First-Time Buyers in Crisis as Properties Too Difficult to Buy

London, England , July 29, 2012 (Newswire.com) - The report published by the Royal Institution of Chartered Surveyors (RICS) and based upon a survey of chartered surveyors across the UK has highlighted the high volume of potential house buyers who cannot get onto the property ladder.

Thirty eight per cent of first time buyers are renting property because they cannot afford to buy in the current climate. It was also highlighted that a further 20 per cent of buyers are not completing purchasing transactions due to the lack of adequate mortgage finance availability and purchases of property falling through. The figures showed how the crisis has increased for first-time buyers with the lowest number of new buyer enquiries in over eighteen months.

RICS has requested that the UK Government considers making a scheme available that is similar to their NewBuy scheme that was launched in March this year. The NewBuy scheme is applicable only to new build homes and helps first-time buyers and existing buyers to buy houses for sale .

They have requested a similar scheme to be launched as the NewBuy scheme to apply to second sale properties that will help first-time buyers access mortgage funding at 95 per cent with a more affordable 5 per cent deposit.

There have also been recent calls for the stamp duty tax holiday to be re-introduced to enable first time buyers' exemption from stamp duty tax below the £250,000 threshold. There are warnings that the number of first-time buyers who cannot afford to buy a property will continue to rise unless mortgages are offered with lower interest rates and the amount of deposit can be more affordable.

The report also showed price falls across the UK. Property prices decreased the most in the Midlands and the lowest decreases were in the South East. London property prices remained buoyant with no decreases reported.

Notes to Editors:
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Source: What House?