Expert: It's as bad as it's ever been for first-time buyers

It is nearly impossible for first-time buyers to get onto the property ladder at the moment, an industry expert has said.

Paul Holmes, chief executive of Firstrung, explained that the lack of credit available to first-time buyers in London and other UK cities meant they were continuing to rent as they could not get onto the property ladder.

He was commenting after a series of surveys indicated young people were planning on renting rather than buying their own homes.

A study by Experian showed that 48 per cent of non-homeowners never intended to buy and Fool.co.uk indicated that 13 per cent of people have cancelled plans to move until the credit crunch ends.

"It's as bad as it's ever been for first-time buyers," Mr Holmes commented. "Once all the froth disappears from the market place then hopefully it will be a time when first-time buyers can begin to thrive, but it's not going to be a short journey."

Recently, Paragon reported that increasing numbers of families are opting to rent flats in London and elsewhere on a long-term basis.

News posted on 23rd May, 2008