Survey: majority of MPs want help for FTBs
Eight out of ten MPs believe more needs to be done to help first-time buyers, according to research by a specialist insurer.
The survey commissioned by Genworth Financial has found 83 per cent of MPs wanted more support for their constituents. This figure rose to 100 per cent for constituencies in London.
Angel Mas, president of Mortgage Insurance Europe for Genworth Financial, said: "We welcome the renewed focus on first-time buyers and call on policymakers to create the right incentives through reduced capital requirements for those lenders taking a prudent approach by mitigating their default risk with mortgage insurance.
"The deposit remains the biggest barrier to homeownership in the UK, along with the prudent approach taken by lenders who are allocating their scarce capital to other segments of the mortgage market."
Four in five of the MPs questioned agreed that a more fluid housing market, stimulated by easier access for first-time buyers, would help the overall financial situation and social mobility of their constituents.
The survey also found that 75 per cent of MPs thought that people with a stable income, but without enough savings for a 10 to 20 per cent mortgage should have access to finance, provided repayments are affordable.
Kusal Ariyawansa, IFA for Manchester-based Appleton Gerrard Private Wealth Management, said: "Nearly all of my clients have set aside or given assets for their children to get on to the property ladder. It is a worry that most will be unable to get on the ladder, especially after graduation with student debts. It will simply widen the rich-poor divide.
"But then again that is evolution. Those who want to get a property will find a way. There is no harm in renting and building a stable financial foundation before buying a house. It would be better to teach these youngsters values about money and how to live within their means rather than worrying about building assets at any cost."