Property investment has become a dream for many people in the UK, with a report from the House Builders Federation revealing that saving a deposit for a home will now take the average first-time buyer ten years. This wait is even longer for those living in London and people in the capital can expect to save for an average of 24 years before owning their first home. To address the problem, it is hoped that Budget 2013 will contain a raft of new measures to help get people on the property ladder and David Cameron has given hope that this will be the case.
Speaking in Keighley, West Yorkshire, the prime minister stated that he was "determined to tackle" the housing crisis and hinted that a fresh package of reforms is being drawn up. He also condemned the rising age of first time buyers, despite stressing that the government would not go back on its economic plans. Mr Cameron has so far far rejected calls from Tory MPs for unfunded tax cuts and from Liberal Democrat minister Vince Cable for more borrowing.
Nonetheless, the coalition has shown its commitment to getting Britons on the property ladder. "We don’t want to go back to the days of 110 per cent mortgages and encouraging people to take on borrowing that they can’t afford," Mr Cameron said. "But it is important that people who work hard and do the right thing are able to buy a home."
This comes on the back of the NewBuy scheme, which enables a newly built home to be bought with a deposit of only five per cent. However, to qualify for such a scheme the home must be priced at GBP 500,000 or less, be the main home, and owned fully by the buyer in question. The Funding for Lending Scheme is also beginning to show results, encouraging banks and building societies to finance prospective buyers in exchange for being able to borrow money from the Bank of England at a low fee.