First-time buyers 'need more support'

Wednesday, April 14th 2010

First-time buyers need government support in order to afford to make a purchase, it has been claimed.

Rebecca Roberts-Hughes, research officer at Metropolitan Home Ownership (MHO), explained the tightening of lending criteria by many banks has affected potential buyers.

"We need to see more support for the intermediate market from both government and lenders," she explained.

MHO was established in 1981 and creates affordable housing for low-paid and working households.

According to Ms Roberts-Hughes, many people are now finding shared ownership is the only way they can afford to buy their first home.

But the government should be investing in schemes to make homes more affordable, rather than trying to implement new strategies with the potential for confusion, she claimed.

Halifax recently revealed a rise of 1.1 per cent in the average house price, which now stands at £168,521.

This is a 5.2 per cent increase over the last 12 months, the organisation noted.