Harder and harder to get foot on ladder.
According to new research it could take new homebuyers up to 24 years just to save up for the deposit to buy a home of their own, getting that first foot on the property ladder is getting an almost impossibility.
In an article in The Guardian it says, The Resolution Foundation think tank has used the Bank of England’s latest survey of household finances to show that with house prices rising sharply, it would now take almost a quarter of a century on avergae for low and middle-income households to accumulate a deposit, on the basis they set aside 5% of their disposable income each year.
Resolution’s chief economist, Matt Whittaker, warned that help to buy may simply boost house prices, lifting them further out of the reach of lower-income households.
He reportedly said: “To the extent that these schemes (Help-to Buy) have stoked demand and so propped up house prices in recent years, they have served to make homeownership even less attainable for many, while increasing the gains flowing to older homeowners who have been the main beneficiaries of the sustained housing boom.”