"Too many have found themselves frozen out of the housing market," admits Secretary of State for Communities and Local Government.
March 27, 2015
Britons have been 'frozen out of the housing market', the Government has admitted.
In a statement to Parliament, the Secretary of State for Communities and Local Government, Eric Pickles, said too many people had been unable to get on the housing ladder.
"Too many have found themselves frozen out of the housing market and denied the opportunities their parents had to get started in their own homes," he said.
His comments follow the announcement of the Help to Buy Isa by the Chancellor George Osborne in the Budget.
The Help to Buy Isa will see first-time buyers given £50 for every £200 they save for a deposit.
The first-time buyer bonus is limited to £3,000 on £12,000 of savings and a person can only open one account.
The Government has also announced a Starter Homes scheme, which provides a 20 per cent discount on homes made available to first-time buyers.
Latest indications show more than a third of first-time buyers who are looking to purchase a new build home hope to use the Starter Homes scheme.
Jonathan Harris, of mortgage brokers Anderson Harris, said: "It is certainly tough being a first-time buyer with wages failing miserably to keep pace with house prices, particularly in London and the south east. Subsequently, unless you have significant financial assistance from the Bank of Mum and Dad, taking that first step onto the housing ladder is likely to be impossible.
"Government schemes such as Help to Buy have been hugely popular, demonstrating the desperate need for assistance. The Help to Buy Isa will also provide a boost and encourage saving, which is no bad thing. However, it alone will not be the solution to the housing crisis. The real issue is that we are simply not building enough homes and until the Government addresses this, many first-time buyers will struggle to get on the housing ladder at all."