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Widespread worries first time buyer conditions

Widespread worries first time buyer conditions

Category: Mortgages

Updated: 22/09/2010
First Published: 22/09/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Worries over the state of the UK housing market are practically all-consuming, with people most worried about prospects for young buyers.

With the property ladder something of an obsession for the British, everybody has an opinion on all matters housing.

However, sentiment is a world away from the glory years of the early to mid 2000s when it seemed that mortgages were easily accessible and a buy-to-let property fortune was in the reach of everyone.

The economic crash and housing market crisis put paid to that, and opinion has come full circle, with 96% of people of the belief that the UK has housing problems, according to survey conducted by YouGov for the Council of Mortgage Lenders (CML).

Since the bubble burst so disastrously three years ago, first time buyers have been set something of an impossible task when trying to find an affordable property.

With deposits of 20% or more required by many lenders, many young Britons have been forced to make an appointment with the Bank of Mum and Dad or make do with rented housing.

The harsh reality is reflected by the eight in ten people who cited the inability of young buyers to find a way onto the property ladder as the biggest housing issue facing the UK.

In addition, most people (80%) have little, if any, faith in the Government stepping in to solve the housing problems facing the UK.

Too many people on waiting lists (48%), housing market boom and bust (44%), the cost of moving house (37%) and the lack of supply of new homes (35%) were also seen as major problems.

"The survey found that, on balance, people expressed support for tighter lending criteria," said the CML's chief economist, Bob Pannel.

"But their high level of concern about would-be first-time buyers sits very uneasily with this.

"Overall, there is a strong case for saying: be careful what you wish for."

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