FTBs 'still cannot get a foot on the ladder'

Posted: 10 May 2010 11:10:43 GMT

The latest house price index from Halifax shows that homeownership is still a distant dream for many first-time buyers (FTBs), which is beneficial to those in the buy-to-let sector.

Jonathan Moore, managing director of Easyroommate.co.uk told Home Move that despite the index showing a fall of 0.1 per cent, many FTBs are still being frozen out of the market due to lenders asking for large deposits.

He highlighted that wage inflation has not kept up with price inflation and this also diminishes the chances of FTBs being able to purchase their first property.

"Thousands of first-timers are being kept from getting their first foot on the property ladder, despite the higher stamp-duty threshold," Mr Moore told the news provider.

Recent data from GfK Financial, revealed that FTB numbers have dropped below 350,000 for the first time in two decades.

Helen Adams, managing director of FirstRungNow, said the large deposits required by lenders is a key factor in why FTBs are unable to purchase a home.


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