Lack of mortgages availability is apparently not the only reason making buying new property difficult for many in the UK, it transpired.
The government should build more houses thus increasing supply in the market making home ownership affordable, argued the Building Societies Association (BSA).
The observation was put forward after the first time buyer industry summit was held on February 15, chaired by Housing Minister Grant Shapps.
Paul Broadhead – head of BSA after attending the meet, said: “There have been increasing affordability issues in recent years as house prices outstripped earnings growth.
“Any initiatives focussed purely on first time buyers, without a sufficient increase in house building, could push prices up for entry level properties ; particularly if second time movers have low or negative equity”.
BSA is a trade body of deposit takers and mutual lenders in Britain and counts all 48 Building Societies in the UK as its members, with a combined £365 billion worth assets managed by its members.