“The income ratio barrier means most properties are completely unaffordable to those on modest incomes.”
Daniel Hegarty, chief executive at online mortgage broker Habito, said although lenders and banks were innovating to help buyers with lower deposits and developing ways for families to help their children get on the property ladder, the figures made it clear “more needs to be done”.
He added: “Just last week we saw the latest statistics showing the impact of stamp duty on housing transactions.
“While first-time buyer relief has had a positive effect on many young people who are in a position to buy, overall the impact of the rise means many people have been put off moving up the ladder or downsizing, causing a bottleneck on suitable properties for newer buyers.”
A recent report from Santander showed the dream of homeownership at a young age would be over in the next decade without urgent action from the government and industry.
Its study showed although nine out of 10 young people wanted to get on the property ladder, the reality was that by 2026 just one in four under 34s were set to achieve that goal.
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