Young first-time buyers face toughest time since financial crisis, says UK housebuilder
Summary
The head of the UK’s biggest homebuilder says buying a first home is as hard now as it was after the 2008 financial crisis. Rising interest rates, student debt, and low wage growth are making it difficult for young people to afford homes, especially in London and the southeast.Key Facts
- David Thomas, CEO of Barratt Redrow, said first-time buying is very challenging, similar to after the 2008 crisis.
- Higher student loan repayments reduce young people’s ability to get mortgages.
- The average age of first-time buyers is increasing, causing concerns about fairness between generations.
- Barratt Redrow and other builders want the government to create a support package for first-time buyers.
- Fewer first-time buyers are in the market now (6% less than last year).
- Those buying are looking for homes about £10,000 more expensive than last year.
- Average first-time buyer homes cost £254,750, rising by 4.3%, faster than overall UK house price growth of 1.5%.
- In London, the average price for first-time buyer homes passed £500,000 for the first time.
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