The Council of Mortgage Lenders have released new figures indicating how hard it is for first time buyers to get on the property ladder, judging by the typical mortgage size of February.
With the average salary coming in at £26,500, it is going to be difficult for people to get enough financial security to be accepted for the typical loan of £119,000.
This figure is going up as demand for houses by first time buyers rises, but current homeowners are more reluctant to move, leading to a stagnant property market.
These figures support Ed Balls’ scorn of the Help to Buy scheme, which he said will not get Britain building homes, but simply fuel the growth of a housing bubble which could burst and leave the market in a bigger mess.
The RICS chief economist Simon Rubinsohn, said that “It is a major concern that we are not seeing enough houses coming on to the market. For the market to operate effectively, we desperately need more homes in areas where people want to buy and live. Until this happens, we’re likely to see prices continue to rise.”
