First-time buyers 'in need of government help'

Posted: 11 May 2010 09:56:29 GMT

First-time buyers are in need of help from the government in order to get a foot onto the property ladder, one expert has suggested.

Paul Collins, editor of BuyAssociation.co.uk, says that without new buyers, the entire property sector will suffer.

He explains that the government needs to lower the cost of first homes, as well as keeping the stamp-duty benchmark for this type of purchasers high.

"The new government also needs to make sure the banks are sticking to their promises to up their lending to allow buyers to have some chance in the market," adds Mr Collins.

His comments come in response to new information from the Association of Mortgage Intermediaries, which suggests that the budget deficit will continue to drive up the cost of home loans in the UK.

Gross mortgage lending is expected to be around £150 billion for 2010, in comparison to the peak of the housing market in 2007 when the figure stood at £363 billion.

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