UK housing market is suffering a shortage of first-time buyers and the situation is likely to get even worse, property website Rightmove. co. uk said.
According to a study conducted by Rightmove, only one in five potential buyers is making the first purchase. Around 22 per cent of prospective buyers have plans to buy their first home over the next year as compared with 31 per cent at the same point in 2009.
Around 199,000 people got on to the housing ladder during the previous year. Ten years ago, the figure was almost at 600,000.
Around 55 per cent of first-time buyers said lack of easy mortgages was their biggest worry. Most of the would-be buyers are unable to afford the deposit required to receive the best mortgage deals.
Speaking on the issue, Nigel Lewis from FindaProperty. com said, “Economically, we are not at a stage where first-time buyers can afford to stump up enormous deposits, nor are lenders willing to take risks on buyers with little equity.”
Currently, first time buyers need on average a 25 per cent deposit as compared with 10 per cent before the financial crisis.
Figures released by the Council of Mortgage Lenders show that 80 per cent of the first time buyers under 30 need financial assistance from parents.
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