Home ownership among younger people has plummeted over the last 20 years, as many Brits can’t afford to get onto the property ladder – but do you think enough support is available?
First-time buyers are grappling with the toughest conditions in 70 years to purchase a property, and we want to know if YOU think enough support is available?
A recent Building Societies Association (BSA) report has shone light on the difficulties Brits currently face, as many are forced to rely on parental support or having two above-average incomes. Those looking to buy a home also struggle with raising a deposit and forking out on a mortgage, which has been exacerbated by the recent mortgage interest rate hikes.
The latest report also highlighted that home ownership among younger people has been in decline over the last 20 years, adding that house price growth has been higher than earning growth for a long time. In fact, around 50 percent of first-time buyers in their 20s were being supported with an average of £25,000 from their parents, the report said.
Paul Broadhead, head of mortgage and housing policy at the BSA, said: “Becoming a first-time buyer is possibly the most expensive it has been over at least the last 70 years, but a properly functioning housing market is dependent on first-time buyers being able to afford their first home.”
He added: “New thinking and radical changes are needed.” It comes as building societies account for 25 percent of mortgage lending, suggesting the market needs to adapt to allow more people to buy a home.
Concerning data from property portal Rightmove has revealed that a large majority of houses on the market are large, four-bedroom homes, which is unaffordable for many first-time buyers. What’s more, the site pointed out that asking prices were starting to spike again.
This means many Brits are “stuck” in renting from private landlords, where costs have soared by 9.2 percent in the last year. The BSA is calling on the government to commission a review of the first-time buyer market and use all their power to help these people buy their first property.
The Lifetime ISA deadline for first-time buyers ended on April 5, which is where savers could deposit up to £4,000 every tax year and get a 25 percent return for free from the Government. This means you could get £1,000 extra if you max out the £4,000 allowance.
However, account holders can only withdraw their funds for two reasons, a pension at 60 or buying their first home. The government will claw back 25 percent if they remove their savings for another reason.
Following the latest BSA report, we want to know if you think there should be more support for first-time buyers. Vote in our poll HERE to have your say.
The Mirror will also be discussing the topic with you in the comments section below and you can join in! All you have to do is sign up, submit your comment, register your details and then you can take part.