24th
Jul 2017
A major UK lender claims that 'millions' of people have given up their dream to own their home and are ending up having to rent accommodation, as they just cannot afford to get onto the property ladder because of the escalating 'residential' prices.
The lack of significant numbers of homes on the market is one of the major factors contributing to higher prices, and according to the lender accounts for increased competition within the private rental sector.
People have given up on ever being able to own a home and there is now the highest number of households having to rent homes. The lender's latest figures on house prices predict that for the foreseeable future numbers of private renters will be on the increase.
The lender says that on average first time buyers need to have savings of £33,000 for a deposit and backs this up with their figures from their latest house price index.
UK house prices in June dropped by 1% which is the largest monthly fall since January, but the average house price is £218,390, up by 2.6% from the previous year.
The Director of the lender's mortgage club, Jeremy Duncombe, said: “Whilst demonstrating our market’s resilience during times of uncertainty, house prices are continuing to increase year-on-year and at a rate that is well above any wage increase.”
In the capital, many first time buyers now have to find a deposit of £100,000 and Duncombe states that this is just "not acceptable".
Duncombe continued: “Many would-be homeowners are now turning to the private rental sector to find more affordable accommodation. Nearly a quarter of households are set to be owned by private landlords by 2021.
“The lack of affordable housing is a problem that will only worsen if the government doesn’t implement the revolution in housing policy it previously promised.
“With the dust now beginning to settle after the general election, we want to see a real push to build the thousands more homes that this country desperately needs, whether that be for prospective homeowners or renters.”
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