Would-be buyers need to save up £27k

14 2008
Prospective first-time buyers now have to stump up in excess of £25,000 just to get onto the first rung of the property ladder, new figures show.

Even though a number of reports have pointed to falling house prices over the past few months, new statistics compiled by the Royal Institute of Chartered Surveyors (RICS) show that a couple in the bottom 25 per cent of earners need £27,738 to move out of the rental sector.

In addition, this situation is becoming worse as people struggle to cope with the rising cost of living, making it even more difficult to put money aside for up-front payments, which also include solicitors' fees and even stamp duty.

"Access to the housing market has deteriorated as the credit crunch has taken hold of the mortgage lender sector," noted David Stubbs, a senior economist at RICS.

"With mortgage approvals declining, the picture does not look like improving in the latter part of 2008 and first-time buyers will find their path to home ownership increasingly blocked."

In May, the Council of Mortgage Lenders pointed out that typical first-time buyers now have to borrow £115,000 to get on the property ladder, making renting a much more feasible option for most. ADNFCR-1219-ID-18682900-ADNFCR

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