Over 50s - No home of their own?

It's not just those in their 20s and 30s who find it hard to get on the property ladder. Indeed, those in their 50s are also struggling, with 23% either renting or living with their parents. So says the latest Alliance & Leicester Mortgages movingimproving index.

However, the survey also reveals that 41% of these non homeowners desperately want to buy but can't afford it. Compared with this time last year, the 'babyboomer' generation is having more trouble getting on the housing ladder. Last year, only 33% of the over 50s faced this problem.

Looking at regional attitudes, over half of those who are non-homeowners in the South East think they can't afford a house (58%) compared with those in London (45%). Nevertheless, it is still those in their 20s and 30s who feel they are not able to afford to get on the housing ladder.

According to recent reports, a first time buyer (FTB) is now on average 34 years old before they get on the first rung. And the research reveals that over half of non-homeowners in their 20s (56%) and 30s (58%) most complain about house prices being out of the reach. Meanwhile, it would appear that FTBs seem to be setting their sights at higher value properties compared with this time last year.

Despite a £5,000 increase in stamp duty in this year's Budget, FTBs are not escaping the tax. In fact, the research reveals that more FTBs are likely to pay stamp duty now compared with this time last year. Last year, 41% of potential FTBs were looking to spend over the stamp duty threshold of £120,000 and would have paid the tax, but now this has nearly doubled and 61% are looking to spend over this year's threshold, £125,000.

Furthermore, 11% of aspiring FTBs will incur the 3% stamp duty tax as they are looking to spend over £250,000 on their first property. This has doubled since this time last year (5%).

03 July 2006 © Moneyextra.com

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