Housing Market - 1st Time Buyers Struggling

Nearly seven in ten first time buyers have given up hope of obtaining a mortgage, underlining the deep concerns in the property market according to a report in The Guardian, 25.5.09.

Even with falling housing prices, the NAEA stated that 65% of first time buyers believe they will never have enough money to get on the ladder, and even with recent Government initiatives, the banks are still refusing to lend the amounts required and when they do, the buyer needs a substantial deposit to obtain the best rates.

The Communities and Local Government Department of the Government is known to be concerned about the situation, particularly in London and the South East. A spokesperson for the department said: “we are determined to improve choice and opportunity for those that wish to buy in London, and improve the private rented sector for those who want to rent.”