First-time buyers ‘disconnected’ from market
A report by the bank found that while the number of first-time buyers rose to a seven-year high in 2014, more people are becoming disillusioned with the state of the market.
The vast majority of people (79%) aged between 20 and 45 believe banks do not want to lend to first-time buyers and 21% say it is virtually impossible to obtain a mortgage.
This has caused a drop in the number of people who are saving a deposit, this figure has fallen from 49% in the last survey to 43% now as people give up on home ownership entirely.
This figure is worse in London where 82% of people worry they will never own a property.
Only half of would-be buyers (53%) said the Help to Buy scheme has had a positive impact on the market, with the scheme often criticised for increasing house prices rather than boosting supply.
Craig McKinlay, mortgages director at Halifax, said: “While there has been an increase in first-time buyers in the last 12 months, at the same time there is also a growing group of young people who believe they won’t be able to get a mortgage.
“This difference between the reality and their perception needs to be addressed urgently if we are to prevent people from giving up on getting on the housing ladder.
“We can educate people about the mortgages that are available to them, but there is still the underlying issue of needing to build more affordable homes. In order to tackle the shortfall in house building there needs to be a long-term commitment to building more new homes in the right locations.”