Tue 31st Oct, 2006
17 million out of the property loop, finds Abbey
Abbey has released research which shows that 17.3 million people are unable to get on the property ladder. Some 7.4 million say one of the main reasons is because of house prices. Of the people polled, 6.9 million said they were unable to afford a deposit, while 3.4 million are waiting for house prices to fall. Additionally, 2.1 million said they could not find the right mortgage. The research also found that 2.7 million first time buyers compromise on the property that they buy.
Some people feel unable to buy because of job security (3 million), lack of time (2.5 million) or simply not wanting to make a commitment (6 million). There were also 1.5 million people who had not found the right area to settle in.
Abbey mortgage product executive Nici Audham Gardiner said: ‘There are people who feel that they do not want to get on the property ladder, but those who do face many barriers of which the most notable is the cost of homes. However, there other more surprising results, for example, job security, lack of time and finding the right mortgage. Strangely, despite hundreds of mortgages available to buyers, our research shows that 12 per cent of non-homeowners believe that they would be on the property ladder if they could just find the right mortgage.’
Abbey is making changes to its mortgage range and lending policy to make it easier for people to get on the property ladder. These include a special range for first time buyers with 5 per cent cashback mortgages and mortgages that allow home purchase with a deposit of just 3 per cent.