The level of home ownership in the UK is being significantly impacted by current restrictions on mortgage availability, it has been suggested.
Ray Boulger of independent mortgage adviser John Charcol noted this is especially true for most first-time buyers who are only able to stump up a small deposit.
Mr Boulger was speaking as his company looked back at the UK’s housing market over the last 60 years in time for the celebration of the Queens’ Diamond Jubilee.
The snapshot revealed the price of a typical dwelling measured by the Nationwide House Price Index has increased by 8,680 per cent in this time, while the Retail Price Index swelled by 2,500 per cent over the same period.
It was demonstrated that since 2003/04, there has been a marked decline in the proportion of UK homeowners and Mr Boulger noted the restrictions on mortgage availability “will result in this trend continuing for the next few years, although a large majority of the population still aspire to be homeowners”.
He added other reasons for this movement include an increase in immigration – with these people having to pay rent when they first arrive – and a rise in young individuals heading to university, a trend that incurs higher debts among graduates and raises the age at which they start working.
