Increasing living costs affecting FTBsPosted: 31 Jan 2012 12:24:44 GMT
FTBs are feeling the squeeze due to escalating living costs.
Escalating living costs are having a significant effect on first-time buyers (FTBs) in the UK, new research has shown.
According to a new Ability to Buy Index from the Royal Bank of Scotland (RBS), FTBs are currently finding it more difficult to enter the housing market than they were during the recession in 2009.
Despite this, the investigation also found mortgage costs to be dropping significantly - so much so that they look set to fall to the levels witnessed in 2003.
Fionnuala Earley, UK consumer economist at RBS Group - which has a history stretching back to 1727, when it opened its first premises in Edinburgh - said: "Our first results show that higher living costs are making it more challenging for first-time buyers to enter the market, despite the lowest mortgage payments in almost a decade."
The industry figure added, however, that inflation is starting to dip and FTB affordability should therefore soon improve.
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