Crunch quashes FTB aspirations
The credit crunch has made it significantly more difficult for first-time buyers (FTBs) to get on the housing ladder, new research shows.
While the global strain on money markets has contributed to falling house prices in the UK, it has also limited opportunities for prospective homeowners to secure their first mortgage.
The situation has gotten so bad that the report - carried out by the University of York on behalf of Hometrack - says 41 per cent of people are no longer able to buy in the capital.
That means young people looking for property for sale in London are increasingly likely to postpone plans to become owner occupiers and stay in the rental market for longer.
"While house prices are falling, access to the property market is being increasingly limited by the costs and more restrictive terms of a substantially reduced supply of mortgage finance," explained lead researcher Steve Wilcox.
Hometrack director of research Richard Donnell added: "Until such time as mortgage rates start to fall, lower house prices will be the only real driver of improved affordability for first-time buyers."
Published 4th June, 2008
© 2008 Estates IT Limited
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The credit crunch has made it significantly more difficult for first-time buyers (FTBs) to get on the housing ladder, new research shows.