FTBs 'facing serious deposit problems'

Posted: 20 Sep 2011 16:53:39 GMT

It is currently very difficult for FTBs to raise enough money for a deposit, it has been claimed.

First-time buyers (FTBs) trying to get a foot on the property ladder are currently facing many obstacles, it has been suggested.

Helen Adams, managing director at First Rung Now - which was established in 2003 - noted one of the main barriers preventing FTBs making strides in the market is the amount of cash required in order to put down an adequate deposit.

The industry figure noted this factor is posing serious problems for would-be home buyers, as many simply cannot afford to scrape together the considerable sums needed for this kind of action.

Ms Adams was speaking in response to new figures released by First Direct, which showed housing deposits have risen tenfold over the last two decades.

According to the study, 2010 was the most difficult year in which to purchase a property in the last 20 years, with average costs involved in doing so amounting to 6.3 times greater than the income enjoyed by the average household.

Furthermore, it was demonstrated that the average deposit last year ran at 1.7 times more than this figure.

Ms Adams noted that while these figures are surprising, she is aware the large sums are proving sizeable hurdles for those hoping to enter the market.

The expert stated: "I wouldn't want to see it get any worse for FTBs, but what this brings home to me is that, with it being so difficult for FTBs to save [a deposit] themselves, then the need for them to get help from other places, such as parents and grandparents, is ever greater."

Earlier in the month, press officer for Priced Out Katy John suggested FTBs should be given long-term assistance from the government to help them get a foothold on the property ladder.

She said a lack of mortgage availability is just one restriction such people face at present.
 

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