Homeownership is Becoming Less of a Possibility for UK Families
Homeownership is still a far off dream for many UK families. The recovery of the economy has remained a strain on households and few are able to save for a deposit. Not only can they not save due to the demands on their budgets but they cannot raise deposits sufficient enough as what is required by lenders.
The economy is expected to struggle for many years ahead. This is going to completely change the makeup of the housing market. Homeownership will become less and less of a reality and households will become lifelong renters. This impacts more than just those outside the property ladder. Without new buyers there is no one to buy starter homes, then no one to buy the homes on the next rung of the property ladder and so on. Without buyers the entire housing market comes to a standstill in many aspects. It also causes the economy to remain weak. A healthy housing market is indeed necessary for a healthy economic condition of a country, especially the UK economy.
Experts are calling for more to be done to help get households into their homes. CBI director general John Cridland said, "We have to do more to give our young people hope in the future and support their aspirations to be homeowners.
"We could reduce the risk of higher loan-to-value mortgages if the government encouraged lenders to take out insurance against the borrower failing to meet payments.
"Owning a home has been a natural aspiration for generations of Britons since the 1950s, and should not become the preserve of a lucky few."