Plea to help first-time buyers - Mortgages - News - Moneyfacts


Plea to help first-time buyers

Plea to help first-time buyers

Category: Mortgages

Updated: 06/05/2009
First Published: 06/05/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
First-time buyers are keen to return to the housing market, but will need the help of the government and lenders if they are to do so.

Sixty nine per cent of potential first-time buyers think now is a good time to buy, a notable change in sentiment influenced by the majority of 57% that now expect prices to remain the same or increase during the next twelve months, property website Rightmove has revealed.

However, with the average deposit needed to take a first step onto the housing ladder having been revealed to be £31,650, it is a step that many will be unable take.

"Policy makers and mortgage lenders need to take the plight of frustrated first-time buyers seriously and consider the effects of cherry picking equity rich buyers who are trading up," said Miles Shipside, commercial director.

"The result is short-chains which are counter productive to the long-term health of the housing market. We need to think about the long-term effects of the continuing mortgage famine and current lending policies."

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