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New low in youngsters buying homes
2:16am Tuesday 22nd July 2014 in © Press Association 2014
The rate of young people buying homes has fallen to the lowest level on record, a new report says.
Just 3% of those buying property in June were aged 18 - 30, according to the National Association of Estate Agents (NAEA), the lowest it has ever recorded.
In contrast 48% of buyers were aged 31 to 40, the NAEA said in its June Housing Market Report.
First-time buyers of all ages accounted for 20% of sales, down from 25% in May, the organisation said.
Mark Hayward, the NAEA managing director, said: "Things are getting even tougher for first-time buyers.
"Not only do you now need to stump up ridiculously large sums of money in terms of deposits and stamp duty to be able to get on the ladder, but new rules mean buyers will also have to prove they can easily afford repayments now and in the future.
"Alongside this, a scaling back of the Government's Help to Buy scheme and the implementation of the MMR (Mortgage Market Review) in April will also have a significantly negative impact on the first-time buyer market."
The NAEA said 78% of its members believed that Bank of England governor Mark Carney's recent announcement on a cap on high-risk mortgages will affect the number of first-time buyers and homeowners looking to move.
The pace of growth in mortgage lending remained subdued in June compared to the start of the year, according to figures from banks and building societies released last week.
Data from the Council of Mortgage Lenders revealed that an estimated £17.5 billion worth of home loans were handed out last month.
This was an increase on £16.8 billion in May and the highest monthly figure since October last year. It was 17% ahead of June last year, following a 13% year-on-year rise in May.
Earlier this week the Office for National Statistics said house prices in London had risen at a record annual rate of 20.1% while they were up 10.5% across the UK.