65 percent of would be first time buyers face gloomy outlook
It has been reported that as many as 65 percent of would be first time buyers that may have been hoping to get onto the property ladder before house prices start increasing again may have little or no luck, as they do not think that they will be able to afford to do so.
A recent survey has revealed that two thirds of would first time homeowners see too many things standing in their way of being able to get onto the property ladder, even though property prices have been falling over the past eighteen months.
With mortgage lenders putting stricter criteria into place and demanding more money from buyers, which is a huge obstacle for first time buyers with no previous property from which to take equity, 65 percent of would buyers have now decided that it will be impossible for them to get onto the property market at the current time, and this means that even though interest from first time buyers in the ailing housing market has increased the likelihood of this interest converting into sales is minimal.
An official from the National Federation of Property Professional stated: “With banks still refusing to lend and the Government doing practically nothing to help first-time buyers, it’s little wonder that so many people have given up hope of every owning their own home. First-time buyers are the bedrock of a healthy housing market.”
He also said that the chancellor, Alistair Darling, had failed first time buyers as a result of not scrapping Home Information Packs in the recent budget and failing to roll out the stamp duty exemption to the rest of the market.
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