A fall in the number and value of mortgages which are being taken out by first time buyers has been commented on by an executive of Legal Marketing Services Ltd., Andy Knee.
Overall, mortgages for first time buyers has dropped since May, something which, according to Mr Knee, needs to be addressed by the government.
First time buyers are largely made up of ‘generation rent’, the current generation of people attempting to move out of their parents’ homes and get their foot on the property ladder.
Unfortunately, due to the state of the housing market, this is largely impossible for a vast amount of people, who can often only afford to rent, and that is only if they can afford to move out of their parent’s homes at all.
Commenting on this drop in volume and value of mortgages on average, highlighted by the Office for National Statistics and the Council of Mortgage Lenders, Andy Knee said: “Prices paid by existing homeowners increased by almost 6 per cent year on year. On the other hand, the first time buyer market saw a slightly smaller increase of 5.1 per cent.”
The fact that the value and number is down from May 2014 is “an indication that more still needs to be done to support prospective homeowners.
“Increase supply and more affordable housing also remain critical to ensuring stability within the market.
“We may see an upward trend here in the future as landlords look to mitigate the reduction in interest tax relief following the emergency Budget. By remortgaging, buy to let landlords can ensure they have the best deals on the properties in their portfolio.”