A new survey has revealed that a massive two thirds of young people looking to get onto the property ladder don’t believe they will ever get the chance.
With lending criteria having become much stricter since the credit crunch, and much larger deposits now required to buy a house, many young buyers are being priced out of the market.
One of the biggest lenders in the country, Halifax, conducted a survey of 4000 non-homeowners and found that many of those believed the banks did not want to lend to them, often finding excuses to turn them down for loans.
Commercial director of Halifax mortgages, Stephen Noakes described this as “undue pessimism” and added that he felt there were to key reasons potential first times buyers were not getting on the housing ladder.
“The first one is the size of the deposit that’s required today,” Mr Noakes said.
“The second factor though is fear of rejection and a number of prospective first-time buyers, about two-thirds of them, believe that most first-time buyers are rejected.”
Rightmove property expert, Miles Shipside added, “Compared to two years ago we’ve seen rental searches go up by two-thirds, yet the available rental stock down by a quarter.”
“Obviously it’s a result of the lack of mortgage availability – they do want a roof over their heads but unfortunately for them it’s a rented roof.”