NAEA: FTBs relying on parental help

05-Feb-2009

Interest rates were cut to their lowest level in history today but a property industry official claims first-time buyers (FTBs) need to be more concerned with 'the bank of Mum and Dad'.

Peter Bolton King, chief executive of the National Association of Estate Agents (NAEA), says many FTBs need financial assistance from their parents to afford a deposit.

Figures published by the Council of Mortgage Lenders last month showed that the average FTB currently has to put down the highest deposit in 35 years - since records began.

And today the Bank of England cut interest rates by 50 basis points, from 1.5 per cent to one per cent.

But such action will not help those looking for a mortgage if lenders fail to lower their rates, Mr Bolton King said.

Action needs to be taken so that improving levels of FTB interest leads to transactions, the NAEA chief added.

"That will not translate into sales and bring the confidence needed to get the market moving again, when the only people willing to give a foot up onto the housing ladder are parents," he explained.

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