Would-be FTBs in London believe homeownership dream is over

Michael Lloyd

September 18, 2019

Nearly three quarters (70%) of would-be first-time buyers in London already believe the dream of home ownership is over, according to Share to Buy, an online portal for shared ownership properties.

In the capital 60% of people are expected to be renting by 2025 and 64% claimed it will become even more difficult for future generations.

This is despite nine in 10 young adults aspiring to buy a home one day.

Nick Lieb, head of operations at Share to Buy, said: “With prices on the open market skyrocketing, it is becoming increasingly difficult for first-time buyers to get onto the property ladder.

“Affordable home ownership schemes, such as Shared Ownership, are providing an alternative route onto the ladder for thousands of buyers up and down the country; often requiring much lower deposits than buying outright.”

Share to Buy said people believe their homeownership dream is over because of the huge deposits required, a lack of supply and general costs.

Many first-time buyers struggle to buy a property with their existing credit rating, or do not have any existing family wealth to tap into.

Around 11% of Brits are unable to afford a home in their preferred area, while 6% find it difficult to borrow enough money from mortgage lenders for the property they want to buy.

Some 37% believe the Help to Buy scheme should be extended beyond 2023, 35% said rent prices should be capped, and 33% said stamp duty should be cut to all homes under £500,000.

In addition, 13% of people want the number of Shared Ownership properties to increase.

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