Millions of families who will be looking to buy their first home are feeling the pressure to do this sooner, rather than later.
Recent research from the Bank of England’s annual banking survey suggests that the spiralling prices, costs and lack of supply are the factors that prevent families from making their first purchase. The Banks research also discovered that half of the families who are not yet on the housing ladder believe that they will not be able to get on it in the future, fuelled by the price rises.
This is a major concern for working families who are renting and wanting to get on to the housing ladder, especially with the news that the price of renting is predicted to increase faster than house prices over the next five years.
There are millions families who will not have enough money to live and pay their bills as well as save for a deposit for a house, even with the current help to buy schemes the government have in place. The current help to buy scheme that offers buyers an interest free loan to top up their deposits is in a record third quarter proving to be popular for first time buyers.
With the Stamp Duty increase being applied in April 2016 for buy to let investors, the current house prices may also begin to spike while a flurry of investors rush to buy what they can before the 3% increase is applied.
The overall picture is looking rather bleak for those families who are caught in the “working and just affording to live” bracket. Historically working families would look forward to saving and affording their first home and then saving for a pension, but these days what working people would save and look forward to is now not such an easy task, or seems attainable.
Check Your Credit Report before Applying for a Mortgage
30 Day Free Trial