First time buyers find it impossible to get on the ladder

Since the recession first hit Britain in 2007 a great deal has been said about the rising unemployment across the country which has made economic re-growth sluggish and led many shops to closure.  However, not as much as been said about the new generation of first time buyers who are finding it impossible to get a leg up on the property ladder.  Not only does this also affect the economy of the country, but it also shows the full effect that the recession has had on people from all over the country.

Just this month the National Housing Federation predicted that 72.5% of the British population that live within a home that is owned or own their own home will decrease down to the much lower 63% before the year 2021 rolls around.  Interestingly enough, according to new figures that were released from both the NHF and the Oxford Economic Forecasting group the recession is not the only responsible party for this drop.

The two groups worked together to create figures show that by 2012 London will have more tenants than home owners as the generation that was promised there would be homes for everyone will be forced to deal with continual housing instability and high rents.  This is due to a lack of finance and also due to the lack of available houses.

Also revealed in the study is the fact that mortgages will be a luxury for a select rare group of first time home buyers who are able to actually make the high deposits of thousands of pounds that is now required for most home purchases.  Due to the fact that most are unable to afford the deposits there will be a large return to renting which is already in progress as the young have no choice but to rent their homes.

This has left the room for housing building rates to reach the lowest levels that have been seen in Britain since the 1920s and the very likely prospect that Prime Minister Cameron will actually end his term with less home owners than when he began despite his campaign promises.  At the same time, young home buyers who have always held the idea of growing up, moving out, and buying a home will have to readjust their views of the future because this scenario may not happen for them or even for their children if the house market remains depressed.

This trend is also affecting the older generation who made their own fortunes and are now saddened by the fact that their children cannot get independent causing them to cash in their retirement funds, sell their homes, and sell many other investments in an effort to help their children get a leg up in life.

However, this does not actually help the housing market any as it simply means that only young home buyers with rich parents are able to afford a home which does nothing to help level out the market.  Most young people have grown accustomed to this idea, but while they are busy waiting for a home to become more affordable they likely are going to be hit with rising rents making it harder to actually save for the deposit they need.