First-time buyers 'need government help with mortgages'

Date:Wednesday 12th May 2010
Author: Susanna Kavka

The government needs to help first-time buyers secure mortgages, as well as introduce some stability into the market as a whole, according to one industry expert.

Editor of BuyAssociation.co.uk Paul Collins called on the new cabinet to provide clear policies and legislation to help the housing market return to good health, but stressed that first-time buyers may be one of the priorities.

He suggested that this demographic would benefit from more affordable housing, changes to stamp duty and increased accessibility to finance from lenders.

"First-time buyers are the group most in need of government help at the moment, and without this stream of 'new blood' coming into the market, the rest of the property spectrum will eventually suffer," remarked Mr Collins.

In his view, it would be a success if people were able to access 80 per cent loan-to-value deals.

These comments were made in response to a statement by the Association of Mortgage Intermediaries, which suggested that the size of the budget deficit could drive up the cost of lending.