Abbey (formerly Abbey National) have announced today that they will, for the first time, lend first time buyers five times their salary.
Having been a first time buyer inthe past, I know that it is a relief to get on the housing ladder, however, I am not sure that lending me or anyone else five time their salary is the answer.
What is really needed is more first time buyer housing being built rather than the town house and executive developments which are everywhere these days.
I heard of radio five live the other week that we need to build an extra 25,000 homes a year in order to satisfy demand from first time buyers. House price inflation is again at twice the rate of wage inflation and we are heading for an unsustainable situation where first time buyers are in so much debt paying a mortgage that they have little money for anything else. This is not good for our economy or for our banking sector if the economy does take a turn for the worse..
Having been a first time buyer inthe past, I know that it is a relief to get on the housing ladder, however, I am not sure that lending me or anyone else five time their salary is the answer.
What is really needed is more first time buyer housing being built rather than the town house and executive developments which are everywhere these days.
I heard of radio five live the other week that we need to build an extra 25,000 homes a year in order to satisfy demand from first time buyers. House price inflation is again at twice the rate of wage inflation and we are heading for an unsustainable situation where first time buyers are in so much debt paying a mortgage that they have little money for anything else. This is not good for our economy or for our banking sector if the economy does take a turn for the worse..
No comments:
Post a Comment