First Time Buyers Borrow for Deposit
New figures show that nearly 1 in 4 first time house buyers have to borrow to fund their deposit
10th October 2005
New figures released by the governemnt show that 23% of first time buyers have to borrow from their family or friends in order to provide a mortgage deposit.
Deposit sizes have ballooned over the last decade of house price inflation. Whereas in 1996 the average deposit size was £5,000, a figure realistically within reach of savers, the figure is now £33,000.
The figures will only add to the view that younger people are being priced out of the housing market, and that more needs to be done to help people get a foot on the ladder.
Yvette Cooper, the housing and planning minister, said that more homes needed to be built, as the demand for homes has increased by 30% over the last 3 decades while the building rate has fallen by 50%.
Read More: The Guardian : First-time homebuyers 'have to borrow for deposit'
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