Savills highlights mortgage accessibility issues

Date:Thursday 9th December 2010
Author: Max Freedman

People attempting to get on the property ladder are currently facing very tricky conditions, according to an expert from Savills.

Lucian Cook, director of residential research at the real estate company, explained that the size of deposits requested by lenders has gone up, but low interest rates mean it is hard to build up lump sums with savings accounts.

He noted that many individuals have been forced to rely on their parents for deposits, particularly since their deposits tend to be much higher proportions of their salary.

"There is a widening gap between those who are already on the housing market and those who are looking to get on it," said Mr Cook.

In his opinion, the current environment is also difficult for people on the first rung of the property ladder, since their homes have not increased in value much in recent years.

Recent research by showed the pessimism in the market, with 58 per cent of young consumers living with their parents believing they will never own a property.