Government schemes 'not meeting FTB needs'

Governmental initiatives that seek to help first-time buyers get onto the property ladder are not addressing the issue with which buyers struggle the most, according to the Building Societies Association (BSA).

The association has said that its survey of building societies has found that the main barrier to entry for new buyers was found to be raising a deposit.

However, government schemes which look to reduce a buyer's monthly repayments are failing to recognise that these payments are still within reach of many, the BSA suggested.

"The existing government schemes designed to help aspirant first time buyers fail to recognise that it is the deposit that is the problem rather than the monthly mortgage repayment," said BSA director general Adrian Coles.

"With rents being so high in many areas, buyers find that their monthly housing costs are often no higher than their previous monthly rental payments," Mr Coles added.

New buyer enquiries fell for the 11th month in a row in October, according to the Royal Institution of Chartered Surveyors.

Finance your build or renovation with one of BuildStore's unique finance packages


© Adfero Ltd