More than six out of ten people believe the government should be doing more to make it easier for young people to buy their own home, according to the results of a survey released by the Council of Mortgage Lenders (CML).
It says more than half believe that it is now "more difficult than ever before" for young people to buy their first home.
The YouGov survey of 2,414 people reveals 88% believe it is now either "very difficult" or "more difficult than ever before" for young people to buy their first home.
Meanwhile 99% of respondents expressed concern at the level of debt that young people now take on at an earlier age. And the vast majority (88%), see this as a wider problem for society rather than just for the individuals involved.
When asked who should help first time buyers, 79% of respondents said the government, followed by local authorities (66%). mortgage lenders (61%), house builders (48%), estate agents (24%) and parents/relatives (8%).
Among the 61% who thought that lenders should help, 68% said lenders should structure mortgages so payments are lower at the start of the loan while 62% said lenders should allow repayments over a longer period and reduce interest rates.
Few, (25%) believed lenders should relax their lending rules and even less (14%) thought they should lend more money. Among those who thought the government should help people onto the property ladder the top three priorities were that the government should abolish Stamp Duty (66%), introduce subsidies for all first-time buyers (65%), and reintroduce mortgage interest tax relief (63%).
The government’s current plans to reform planning processes so that more homes can be built, and to target subsidies to particular types of people, were significantly less popular at 30% and 29% respectively.
Bob Pannell, CML head of research, says: "These results confirm that first-time buyer affordability is a major concern to people, whatever their own personal situation. While lenders have a continuing part to play in helping borrowers (within the constraints of maintaining prudent lending policies), most people believe that government needs to do more and should use tax breaks and subsidies to ease current affordability problems.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
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