Commenting on today’s Council of Mortgage Lenders figures on house purchase lending, Jan Crosby, head of housing at KPMG, said:
“Today’s figures from the Council of Mortgage Lenders show a 21 per cent increase year on year in first time buyer borrowing. This is in part reflective of the fact that last February uncertainty abounded pre-Election, slowing the market, and that the percentage of monthly income that first time buyers are using to service interest repayments has dropped. Interestingly, despite the attention around buy-to-let purchasers flooding the market pre-April, this has clearly not adversely affected the ability of first time buyers to purchase. Nor it seems has the EU referendum put first time buyers off investing, although the picture could change as we get closer to June.
“This thirst to get onto the property ladder should serve as a reminder to Government that demand from Generation Buy is only continuing to grow. This demand is fuelled by measures such as Starter Homes and Lifetime or Help to Buy ISAs, but there’s still huge a supply-side problem – there simply aren’t enough homes being built for this growth to be sustainable. And while the Government has been focusing on increasing the appetite to buy, a vital part of the housing market is seeing little focus – rental. Investment into both private rental and social rental development must form a clear part of the UK’s housing market, to provide stable alternatives to those for whom buying is simply not an option.”
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Notes to editors:
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