Size of deposit to buy a home doubles
A further confirmation of how hard it is to get a first rung on the housing ladder.
“Figures from the Council of Mortgage Lenders show the dramatic turnaround in fortunes for first-time buyers who needed just £12,000 for a deposit in 2007 compared to £26,000 today. The deposit they require is equivalent to 87 per cent of their median salary compared to 41 per cent four years ago.
“The CML described the size of deposit required by lenders as the “biggest challenge” facing first-time buyers. Lenders are demanding higher deposits amid concerns that borrowers will default on their loans as a result of higher unemployment.”
The interesting reflection I have is that perhaps in addition to lamenting the difficulty of people getting into rural affordable housing we should really worry about people, particularly young people getting into any form of home ownership anywhere.
Or should we just accept a different world emerging (not too unlike many other parts of Europe where the norm is to rent) and appreciate that the key issue in some rural areas is not home ownership but access to any form of housing to rent or buy.