Squeezed Britain struggles to get on the property ladder

24-Jan-2012

Low to middle income earners may have to wait 22 years to get onto the property market, according to a recent report from the think-tank the Resolution Foundation.

Increased deposits, coupled with rising house prices will become increasingly tougher to meet as wages in the country remain stagnant. Households that typically bring in just over £20,000 in take-home pay a year may not see their disposable income approach pre-recession levels until 2020, which will have a severe impact on the number of first time buyers willing to meet the rising costs.

In 1991 those on low to middle incomes took four year to save for a mortgage, which doubled to eight years by 2001 and more than doubled to 22 years by 2011. This has led to the lowest level of first time buyers in some places for 35 years.

There was estimated to be around 17,000 first time buyers in Scotland in 2011, the lowest annual total since 1976, according to figures released by the Bank of Scotland. This was despite lower house prices and a continued exemption on stamp duty.

A government first time buyers scheme can offer shared equity or shared ownership options.

Published by Joshua Scott

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