First Time Buyer Woes
The fact that first time buyers are having to load up on record levels of debt in order to become homeowners demonstrates two points; the fierce competition at the lower end of the market, and the undeterred vision of home-ownership as a British ideal. Whilst private rented sector development is becoming more popular, it will be unaffordability that leads to more would-be buyers becoming long term renters. With home ownership a key political vote-grabber, it is likely schemes such as help-to-buy should pave the way for similar efforts aimed at assisting potential buyers.
Whilst lenders remain somewhat cautious, these government led schemes combined with an improved economic backdrop should see credit availability for those at the lower end of the market improve in 2015