The affordability challenges facing first-time buyers have already had a massive impact on the property market. More people are now renting for longer rather than getting on the housing ladder, which has driven up tenant demand to unprecedented levels and caused rental costs to rapidly soar to record heights.
According to Rightmove, the best and most immediate way to alleviate challenges for first-time buyers is for the Bank of England to announce a rate cut, which is likely to lead to lower mortgage rates.
Tim Bannister, Rightmove’s property expert, said: “If mortgage rates are reduced, this will help first-time buyers in the short term more so than election housing promises.
“We hope that the next government can support first-time buyers with well-thought-out policies, which address the difficulties of saving up a large enough deposit and being able to borrow enough from a lender.”
Read more about the UK property market with our dedicated buy-to-let area guides, covering topics such as Newport investment properties and Canary Wharf investment properties.
