Deposit still problem for first-time buyers, says expert
A leading property expert has claimed that the government's introduction of a new stamp duty holiday will make no difference to the plight of first-time buyers struggling to get into the housing market.
Chancellor Alistair Darling announced an increase in the stamp duty threshold from £125,000 to £250,000 which it was hoped would kick-start the market.
However, Paul Holmes, chief executive of Firstrung, believes the problems will continue for first-time buyers with mortgage lenders still demanding too high a deposit for people to afford.
He said: "The majority of people still approaching us for mortgages are miles away from being able to stack up even for a £150,000 purchase let alone £250,000. The majority of lenders are still asking for a 20-25 per cent deposit."
Furthermore, a recent investigation by the Times claimed that fewer potential buyers would be assisted by the move than Treasury forecasts suggested.
News of the continued obstacles facing first-time buyers, despite the best attempts of the government, may encourage people to look for property to rent in the London borough of Bexley, or elsewhere in the UK, instead.
By Martyn Glynn
Published 8th April, 2010
© 2010 Estates IT Limited
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Potential first-time buyers may opt to look for property to rent in the London borough of Bexley, or elsewhere in the UK, after an industry expert claimed the recent introduction of a stamp duty holiday will make no difference to the state of the housing market.