The changing view of home ownership

22 March 2010

Recent figures from the Council of Mortgage Lenders indicate that some 80% of the under-30s need financial help from a parent or relative to get on to the housing ladder.

Of course, there is no reason for this news to raise any eyebrows in the industry but it underlines the fundamental problem of affordability and the continuing lack of housing supply.

It’s also interesting that these figures follow disappointing news from Halifax, which recently announced that it plans to stop offering guarantor deals due to lack of demand.

While Lloyds Banking Group still has the Lloyds TSB Lend a Hand scheme this move raises the question of whether lenders and the government are willing to do enough to support young buyers.

But the million dollar question is - are the under-30s even bothered about getting on the housing ladder? Is the UK becoming like many of its European counterparts in becoming a nation of renters?

Or is it simply that the younger generation are not prepared to lower their lifestyle expectations to save for a sufficient deposit?

I believe it’s a combination of the above factors, which makes it a difficult equation to solve.

But what is clear is that there aren’t any short-term measures emerging to help those who may be clinging to the old ideal of home ownership.

For the millions of borrowers who aren’t squeaky clean the market continues to be a hostile place. And unfortunately the same seems to be true for brokers.

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