Buyers forced into the rental sector

03-Oct-2007

More first time buyers are having to turn to the rental sector because of ever-increasing house prices, a major new study suggests.

While such theories have long been voiced throughout the housing market, new research from the Department for Communities and Local Government (DCLG) has produced a more definitive overview of the situation.

The survey, conducted by the National Centre for Social Research, interviewed more than 19,000 households over the course of 12 months from April 2005, and found that 70 per cent were part of owner-occupying households.

And while 41 per cent of recent first time buyers had come from the rental sector, the private sector's share of the overall market has risen from 19 per cent to 35 per cent between 1993 and 2005.

The average age of those looking for a first time buyer mortgage was also on the increase, the survey implied, with a quarter of recent first time buyers now being over the age of 35.

"These figures show that young families will feel the strain if we don't build more homes," commented housing minister Yvette Cooper.

"People who are opposing new housing development need to consider the unfair consequences for young people.

"In the last few weeks and months, we have seen councils in the south-east and Yorkshire oppose proposals for increased housing. Today's figures show that every region needs more homes and every council needs to do its bit to help future first time buyers," Ms Cooper added.

As it stands, however, it seems that more Britons will look to innovative schemes such as a shared ownership mortgage or shared equity offerings in order to get onto the housing ladder.

First time buyers 'facing enormous struggle'
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-facing-3509.aspx"

Study reveals extent of first time buyer problems
http://www.firstrungnow.com/first-time-buyer-news/study-reveals-extent-3488.aspx

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