11th
Aug 2021
A PropTech company’s chief finance officer says the major effect of the stamp duty holiday has had on house prices has made many tenants believe that there is little chance of ever owning their own home, and having to accept that they will be restricted to renting a home for the rest of their lives.
Many indices show that average house prices in the last twelve months have risen between 7.0 and 11.0 per cent.
Because of this, Chris Hutchinson, CFO of the Prop Tech company, states that renters with little if any savings at all to buy their first house, must be given much needed incentives and financial assistance to achieve their dream of home ownership.
“While the temporary [stamp duty holiday] has helped some buyers in their pursuit of homeownership, this was never going to be a long-term solution and barriers to homeownership remain firmly in place” he says.
“Coupling this with where we are in the disparity between average salary and average asking price means Generation Rent face an uphill struggle on their way to homeownership.
“Nobody should feel that they are stuck with a lifetime of renting. But with tenants plugging thousands into the rental system each year, this money can feel like a waste.”
He continued: “Making rental payments count towards people’s credit rating will make it easier and quicker to secure an affordable mortgage when the time is right.
“Rather than temporary support measures and quick prop ups for first-time buyers, it could make far more difference to Generation Rent if we could have them equipped to buy from the very start of their rental journey.”
News Archive »