The co-founder and conveyancing director of Share a Mortgage said people “stuck” in rented accommodation felt disempowered and unable to “proceed through life’s milestones such as marriage and children because they cannot afford to get on the housing ladder”.
He added: “With warnings that would-be homeowners are being priced even further out of the property market, we are seeing an ever-widening divide between the haves and the have-nots. It is incredibly concerning to think about the wider impact this will have on our society.”
Earlier this month Bank of England governor Mark Carney gave markets a clear signal that a base rate rise was likely later this year. The bank has also been awarded powers to cap mortgage lending if it considers the housing market to be overheating.
Andrew Montlake, communciations director at London-based Coreco, said: “While I understand the level of worry about house prices spiralling out of control in London, recent anecdotal evidence suggests prices may have reached a plateau and the Mortgage Market Review is beginning to have an effect. There remain some deep underlying issues of lack of good-quality homes in high-demand areas, many of which are snapped up by cash buyers, foreign nationals and buy-to-let investors.”