Outlook still 'bleak' for first time buyers

27-Jul-2007

The number of graduate first time buyers who are yet to buy a home rose by three per cent during the last 12 months as house price rises continued to price the demographic out of the market.

The Scottish Widows Bank Graduate First Time Buyer report has revealed that 56 per cent of graduates have yet to buy a home, with the figure still as high as 25 per cent when assessing those who left university over the past ten years.

Pessimism seemed to be on the increase, the report implied, with 19 per cent believing they would not be able to afford mortgage payments were they to buy a home and almost ten per cent saying they did not think they would ever be in a position to get onto the housing ladder.

"First time buyers are struggling to save for that deposit, and recent interest rate rises are acting as a further deterrent," added Richard Clark, head of product developing and marketing at Scottish Widows Bank.

Stamp duty is also a major stumbling block for many, according to Helen Adams, managing director of FirstRungNow.com.

"The government praises itself on its track record with stamp duty but over half of first time buyers still have to pay it. We believe that as a barrier to purchasing, and to help first timers in particular, they should be exempt from this tax," Ms Adams commented.

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