Steve Hicks, Managing Director of Genie, responded to a report issued by the National Housing Federation that shows today’s average first-time buyer needs a deposit of £30,000 – ten times the amount required in the early 80s*.
Mr Hicks said:
“At Genie we have long been aware of the fact that excessively high deposits exclude many from entering into homeownership – and that this is a worsening problem.”
“That is why Genie, a home purchase plan that doesn’t require a mortgage or deposit, was devised as a way for people, who are currently excluded, to access the housing market.”
“The costs of renting a home make saving up for a mortgage deposit impossible for many people who are already trying to manage on too-tight budgets.”
“The housing market should not be an ‘exclusive members club’ for those whose parents are rich enough to be able to help them into homeownership.”
“We call on all political parties to look closely at the options that are being developed to help resolve the issues faced by first-time buyers today.”
“Genie firmly believes it has developed a solution that will help some first-time buyers to achieve their goal of their own home without parental help.”
Key facts from the report
- The average first-time buyer today needs a £30,000 deposit, almost ten times* the deposit required in the early 1980s.
- First-time buyers have an average income of £36,500, compared to the average salary for first-time buyers in the 1980s of £20,000*.
- A first-time buyer has to borrow 3.4 times their annual income on average, compared to first time buyers in 1979 who needed to borrow just 1.7 times their income.
- Two thirds of first-time buyers receive financial help from parents – a figure that has doubled in five years.
(*Adjusted to account for inflation)
For more information on Genie visit www.ownageniehome.co.uk.