There may be good news on the horizon for first time buyers as the Government plans to allow deposits to be cut to 5% instead of the current 20%. This will be due to 95% mortgages being backed by the taxpayer, and aims to ‘unstick’ the housing market.
The Housing Minister, Grant Shapps said “The problem that we have is that lenders aren’t lending, builders aren’t building and people can’t get their deposits together to buy so we’ve got a triple problem in the housing market.
“What we want to do is make it easier for first-time buyers… who say the biggest problem we have is the amount of deposit that we have to get together – that is their biggest blockage”.
The Government’s housing strategy aims to tackle the housing shortage, create jobs in the industry, and give people a better chance of getting on the housing ladder.