2014 saw mortgage lending reach new highs as a few first time buyers muscled their way back into the market, figures show.
However, the number of new buyers making it onto the property ladder is still far below that of the pre-credit crunch market.
The Office of National Statistics has revealed that in 1991, 65% of 25-34 year olds in England had bought their own home. This means around 1 in 3 young people could afford to buy their own home during the last two decades of the 20th century, while only 1 in 10 can afford their own home today.
Despite this drastic difference which highlights a market loaded against people who have not bought property previously, total mortgage lending is on the rise. An estimated £205.65 billion was loaned last year, the majority of which was for home buying, according to the Council of Mortgage Lenders.
This is up 17% on 2013’s total lent amount, helped along by lenders willing to accept smaller deposits, and the continued work of schemes like the Help to Buy scheme.
The housing market seems to be picking up, despite rising property values. But only for people who have been saving for a very long time or for who already own property. The market is still an inhospitable place for first time buyers, despite efforts to give them a leg up. Without any major breakthroughs, we could end up with a generation of renters, which, in itself, may damage and unbalance the market even more.
