Home ownership now “impossible” for many young people - HBF

Only the top 30% of earners are able to buy a home due to rising house prices, mortgage costs and lack of government support according to a new report from the Home Builders Federation. And the situation has worsened considerably in recent years.

The report, Broken Ladder: Stairway to Never, finds that the absence of a government support scheme for prospective buyers, amidst a lack of affordable mortgage lending, is making homeownership unaffordable for hundreds of thousands of would-be buyers. Comparing the situation today with the experiences of previous generations that were able to benefit from government assistance onto the housing ladder, the new research details the declining accessibility of the housing market for younger households.

“It is the first time in decades that first-time buyers are without support from a government initiative with our analysis finding that homeownership is now only attainable for those on higher incomes or with access to significant family wealth,” says HBF. “As a result, despite being able to afford to service a mortgage, many are stuck renting indefinitely, unable to save for a deposit while paying ever-increasing living costs.”

The report finds that when Help to Buy, the most recent government …