Optimism toward a rebounding housing market has grown with the government’s announcement of a new scheme to bring first time buyers to the property ladder.  The Help to Buy scheme is set to assist buyers with deposit levels through interest free loans from the government for newly constructed homes under the £600,000 level.  Along with this scheme and low mortgage interest rates it is expected that first time buyers will respond and seek to climb onto the property ladder.  As confidence grows in the housing market it is expected that hopeful buyers not in use of the scheme will also seek to make a purchase.

According to a study conducted by MoneySupermarket the optimism is slowly growing with hopeful home buyers.  When asking those that do not currently own a property if they believe they will ever own a home, those that answered they will never be capable of buying amounted to fewer than those that had answered the same last year by 6%.  The average age that hopeful buyers believed they will be when they can purchase a home was 37 years old.  

Of those responding in the survey that expect the Help to Buy scheme will aid them in purchasing a property only 29% were positive of taking advantage of the opportunity.  Those expecting difficulty in getting a mortgage amounted to 34% and 12% responded that saving a deposit of 5% would be daunting. 

Clare Francis, spokesperson for MoneySupermarket.com remarked “Home ownership is something millions of people aspire to so it’s encouraging to see an increase in the number of people who hope to one day own their own home, even if though may feel a long way off for many.

“The Bank of England’s Funding for Lending scheme has provided a real boost for the mortgage market in terms of the number of products available. However, the main beneficiaries are those with large deposits so it is understandable that so many aspiring homeowners still think it’s going to be difficult to get onto the property ladder. And even though the government’s new Help to Buy initiative is aimed at giving help to these people it is evident that many are sceptical that it will make a significant difference.”