Deposits kill home dreams
PUBLISHED: 16:16 22 April 2009 | UPDATED: 23:24 15 June 2010
ALTHOUGH house prices have slipped within reach of first-time buyers in East Devon, soaring deposits mean they are still locked out of the market.
ALTHOUGH house prices have slipped within reach of first-time buyers in East Devon, soaring deposits mean they are still locked out of the market.A tightening of lending following the credit crunch is to blame, new research for Shelter reveals. Figures from the housing charity's annual Roof Affordability Index show the average house price for first timers in the South West is now £131,461, more than £25,000 lower than last year. But this improvement in affordability is more than offset by an average doubling of the size of the deposit asked for by lenders. In September 2007 the average deposit nationally was £13,194, the survey reveals. However, by January 2009, that figure has more than doubled to £30,632. The lack of accessible mortgages was not the only factor holding first time buyers back from entering the market. Rising repossessions, unemployment, economic uncertainty and the expectation that house prices may fall further are all having an impact, the charity says.