Government 'needs to support young mortgage applicants'

Date:Monday 19th April 2010
Author: Susanna Kavka

Young people are in a position where they cannot afford their mortgages, a situation which needs to be remedied by government input, one sector commentator has suggested.

Spokesperson for PricedOut.org.uk Katy John claimed that having a generation of first-time buyers unable to get into the housing market is bad for communities, since individuals may end up leaving cities and even the country as a result.

She challenged the next government to think about the long-term future of the housing industry and how it is being affected by high prices, particularly in London.

Ms John remarked: "The government needs to balance the needs of the younger, working priced out generation with those of older generations, including those who are retired or are approaching retirement."

Figures published by Land Registry last month showed that the average house price in London fell by 0.5 per cent in February to £333,394, but this figure has risen 11.9 per cent in the past 12 months.