Deposit rates 'remain problematic for young people'

Housing deposits remain a "major problem" for potential first-time buyers, even when cheap mortgage rates are available, according to the Council of Mortgage Lenders CML.

Bernard Clarke, communications manager for the organisation, was commenting after a YouGov survey, commissioned by the National Housing Federation, revealed that 86 per cent of 18-30 year-olds cannot afford to buy a home.

Some 54 per cent of interviewees said they expect to need financial assistance from parents or friends when they try to move onto the housing ladder.

Mr Clarke stated: "The major problem for first-time buyers is the size of the deposit that they have to come up with."

"On average, now, that's 25 per cent of the cost of the property, which is a very significant amount of money for a first-time buyer to acquire."

He noted that the relatives, who may once have been willing to help, have in many cases seen the value of their own property fall and are in no position to offer financial assistance.

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2010-03-19 13:30:05 © Moneyextra.com