First-time Buyers Need More Help

Homeownership needs to be made more affordable for the young with flexible options to get first-time buyers onto the property ladder, according to one industry organisation.

A combination of rising house prices and higher levels of student debt are making it almost impossible for young adults to afford their first property with many having to stick with renting for longer.

The Council of Mortgage Lenders (CML) says the most effective policies for providing affordable housing will be those that offer the flexibility for young home buyers to take on only levels of mortgage debt that are prudent given their incomes and other financial commitments.

"The CML remains keen to explore new ways of getting first-time buyers onto the property ladder where possible," said Bob Pannell, Head of Research at the CML.

"The Open Market Homebuy scheme will be launched in October with lenders contributing to a shared equity loan. We hope this can be a platform for a more flexible approach and we urge the government to work with lenders to develop innovative ways of helping young people who want to buy their own home."