Half of non-homeowners priced out of property market

Posted: 12 Oct 2006 10:14:39 GMT

Almost half of all non-homeowners in Britain (49 per cent) cannot afford to buy a property.

Almost half of all non-homeowners in Britain (49 per cent) are unable to enter the property market because price are too high, as concerns about affordability grow.

A third of prospective buyers view owning a home as a sign of success, but one in five believe that it is out of their reach, a study by IFA Promotion found.

The independent financial advice organisation found that almost two thirds of non-homeowners (62 per cent) claim that owning their own home is part of their life plan, but one in four are unsure about how they will fund the purchase of their first property.

A staggering eight out of ten respondents to the IFAP poll said that they knew "little or nothing" about mortgages, with the proportion of women admitting to it than men.

Karen Barrett, IFA Promotion marketing director, said: "A huge proportion of people know nothing, or little, about buying a property or mortgages. The need for advice is clear and arguably it is the first time buyer who would benefit from independent financial advice the most."

A number of recent studies have indicated that potential buyers are increasingly struggling to afford their first home and the Bank of England is widely expected to raise interest rates again before the end of the year in order to cool the UK property market.

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