View more on these topics

A third of potential buyers are trapped in the rental market

Over a third of potential buyers are trapped in the rental market as they cannot afford to get a foot on the property ladder.

A survey by TheRoyal Institution of Chartered Surveyors found that 38 per cent of potential buyers cannot afford to take the first step while a further 20 per cent are seeing their purchases fall through due to difficulties with mortgage finance.

The global residential director of RICS Peter Bolton King says: “Many first time buyers are facing the prospect of a property ladder with no rungs. With lenders requiring such hefty deposits and affordable mortgage deals out of reach for most, a generation of potential homeowners are facing an uphill struggle. Without allowing more first time buyers to enter the market, chains will continue to stall and transaction levels will stagnate.”

RICS notes that, since the government’s NewBuy scheme only applies to newly built properties, a large number of properties in the UK remain out of reach for most first time buyers.

Bolton King proposes an extension of the NewBuy scheme that could help overcome these immediate problems: “RICS would like the government to consider a mortgage indemnity scheme that works for the whole market, not just new build. NewBuy could potentially lead to market distortion by reducing demand for second hand property. Without allowing first time buyers greater access to the second hand market, chains and transaction levels will continue to stagnate.”

Recommended

3

Payday lenders agree to new code of practice

Short term lenders in the UK have entered into a new customer charter which falls far short of expectations, according to a leading consumer protection group. Four trade associations, representing over 100 lenders and around 90% of the total market have drawn up a new customer charter designed to improve background checks on applicants as […]

The Long View

BBC Radio 4

Available on iPlayers

George Patellis joins West One Loans

West One Loans has appointed George Patellis to head-up its distribution strategy. Patellis, who has previously held senior managerial positions at Lehman Brothers, Bear Stearns, C-BASS and Washington Mutual, has been hired to develop more introducer relationships. The chairman of West One Loans Duncan Kreeger says: “George has an unrivalled track record in the industry. […]

Coventry BS change terms of interest only mortgage repayments

Coventry Building Society have altered the acceptable repayment conditions of their interest only mortgages to exclude most ISA products. Under the new terms, cash ISAs are not longer considered an acceptable form of repayment plan, along with savings ISAs and premium bonds. Stocks and shares ISAs remain a valid means of repaying a mortgage with […]

Survey cover

EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.

Newsletter

News and expert analysis straight to your inbox

Sign up