Charles McDowell, Commercial Director, Mortgages comments: “Although we welcome the year-on-year increase in the number of first time buyers during May, the numbers are still underwhelming. An increase of 3.5% year on year only represents an extra 900 loans and given the recent stamp duty cut, the Help to Buy scheme and the fact that we are seeing historic low interest rates for first time buyers, this really is not good enough.
“It is apparent first time buyers are still finding it difficult to get on the housing ladder, despite the recent measures taken by the government to make things easier. First time buyers are a key driver of the housing market but these figures reveal just how hard buying a first home really is.
“Our latest First Time Buyer Index1 reflects this, showing that most (89%) prospective first time buyers believe getting on the property ladder is extremely hard. Raising a deposit is still the number one obstacle for four in 10 (40%) prospective first time buyers, and property prices are also cited as a barrier. Our research suggests low levels of confidence among those looking for their first home and this will have ramifications further up the housing chain.
“At Aldermore, we are fully aware of the issues facing first time buyers, and we want to do all that we can to support them. Our human approach to lending enables us to consider each case on an individual basis and we offer a variety of products to cater to individual needs.”
1The figures from 2018 are sourced from a nationally representative survey conducted by Opinium Research with a sample of 1,501 prospective first time buyers and 502 actual first time buyers. The sample was restricted to GB adults who were students or in work.
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