Broken Ladder: 4.5 years of hardship then you can afford a deposit propertytalk Live!
New research reveals that the average first time buyer (FTB) would have to save every single penny of their remaining earnings after they’ve paid their rent for four and a half years to have a chance of getting a foot on the housing ladder.
In London it would take nearly a decade.
Saving a more realistic 50% of discretionary earnings, allowing people to eat and clothe themselves, would take on average across England nine years, or in London nigh on 20 years.
The Home Builders Federation has released a report, Broken Ladder 2, identifying the increasing lack of accessibility to the housing market at a time when supply is critically low – last year saw the lowest number of homes built since 1923 – with mortgage availability remaining the biggest constraint.
HBF is urging Government to act. It is calling for the introduction of a Government supported Mortgage Indemnity Insurance scheme, to help incentivise lenders to lend at higher LTV rates that potential FTB’s could afford
