In reaction to the latest annual English Housing Survey, Charles McDowell, Aldermore’s Commercial Director, Mortgages comments:
“These latest figures illustrate just how difficult the housing market is, particularly in London. As usual, it is unfortunately first time buyers who are in the firing line. Most worrying is the figure showing homeownership amongst those under the age of 45 has dropped by one million since 2010 – with those aged between 25 and 34 still the largest group to rent privately. Due to the changes to the buy to let market, we believe the cost of renting is likely to increase. This will ultimately affect the ability of renters and aspiring first time buyers to save for a deposit, making the goal of home-ownership even further out of reach. Unless something significant is done, this perpetual cycle will only continue.
“Sadly, our latest First Time Buyer Index1 reveals it is accepted by one in three (35 per cent) first time buyers that buying their first home will be an extremely difficult process, with raising an adequate deposit continuing to be the biggest concern. We strongly believe first time buyers are the driving force of the property market, however a low level of confidence amongst this group is already having ramifications further up the housing chain.”