Britain could become a country where renting a homes is more common than buying within a generation.
Research commissioned by building society Halifax shows that despite 77 per cent of current renters aspiring to buying their own home, nearly two thirds of 20-45 year olds believe they have no chance of owning their own house or flat. A perception amongst buyers between the ages of 20 and 45 believe that there’s a general perception that they’ll be turned down by lenders, so see little point in applying.
Nearly two thirds also said that they didn’t want the stress and anxiety of applying for a mortgage.
It could mean that Britain becomes more like its neighbours in Europe, where most people rent their homes. However, reports have surfaced in the media of secret talks reportedly been held between major banks, the Council of Mortgage Lenders, and some of Britain’s largest house builders in which the establishment of a special fund to underwrite up to 95 per cent of the value of new homes for first-time buyers was discussed – in effect, providing something resembling 95 per cent mortgages. These have been a rare sight since the financial crash of 2008, which has meant that few first-time buyers are able to take advantage of the historically low rates of interest.