Insurance News Archive

First-time buyers being priced out of the market

First-time homebuyers are being priced out of the market because they are unwilling or unable to commit to mortgage payments.

A survey by Premier Guarantee states that because almost three quarters of residential property is priced at over £150,000, the housing situation in the UK is reaching "crisis" point.

Although more homes are set to be built in the UK than last year, the financial provider claims that the lack of affordable properties is set to continue.

"Although there has been a substantial increase in new house building, any notion that the housing crisis is being tackled or that the situation for first-time buyers is likely to ease, can be firmly dismissed," comments Robin Plaster, sales and marketing director at the company.

Figures show that the number of homes developed by or for the government by housing associations is gradually decreasing.

"The government must do more to assist first-time buyers," Mr Plaster concluded.

26 May 2006