Nearly eight in 10 people aged 20 to 45 believe that banks do not want to lend to first-time buyers, according to a report by Halifax.
The bank’s fifth annual report – which surveyed 40,000 people between 20 and 45 and 4,000 people with children between these ages – found that 79 per cent think banks do not want to lend to first-time buyers and that 21 per cent believe it is “virtually impossible” for these buyers to get a mortgage. This is despite the increase in first-time buyers last year to levels not seen since 2007.
Forty-three per cent of respondents are currently saving for a deposit, says the report, but 57 per cent are not.
The three most cited barriers to homeownership among those who do not own a property are the size of the deposit (57 per cent), high property prices (56 per cent) and low income (53 per cent).
London has the lowest proportion of homeowners aged between 20 and 45, at 39 per cent, and also the highest number of people in this age group who fear they will never own a home (82 per cent).
Those who do not own a home are prepared to save for a deposit for an average of 5.3 years and can afford to save an average of £33.35 each week.
Halifax mortgages director Craig McKinlay says: “While there has been an increase in first-time buyers in the past 12 months, at the same time there is also a growing group of young people who believe they won’t be able to get a mortgage. This difference between the reality and their perception needs to be addressed urgently if we are to prevent people from giving up on getting on the housing ladder.
“We can educate people about the mortgages available to them but there is still the underlying issue of needing to build more affordable homes. There needs to be a long-term commitment to building more homes in the right locations.”