Scarcity of first-time buyers threatens economy

The difficulties faced by first-time buyers are now a genuine social problem which threatens the well-being of communities nationwide, according to the New Homes Marketing Board (NHMB).

Some 90 per cent of the population feel property prices for those trying to get their foot on the first rung of the housing ladder are an issue in their area, and that the problem is worsening.

The group's findings provide a clear indication the public understand the unique importance of first-time buyers to national and local economies, and how badly they are suffering in present conditions, in the view of NHMB chairman David Pretty.

"This NHMB survey indicates that the housing shortage is a reality and is being felt right across the country in virtually all social and age groups," said Mr Pretty.

"What's more, when we asked our sample who should take most responsibility for trying to solve the problems facing first-time buyers, 54 per cent said it should be jointly tackled by the public sector and the private sector.

"That is with government, local councils, house builders and housing associations working together."

Several key issues have been identified by the NHMB.

The group is calling on local authorities to release supplies of surplus land and to fast-track the application process for first-time buyer homes.

Supply could be increased though such measures and then enhanced through abolition of stamp duty on properties under £250,000, according to the NHMB.

"We support the government’s efforts to streamline and speed up the planning system – which is still the biggest constraint on new homes supply – and its various initiatives to help first-time buyers, particularly key workers like teachers, nurses, emergency service personnel and those others who keep our vital public services running.

"But these initiatives, while welcome, really only deal with part of the problem. To crack it, we need decisive action on land supply and the planning system," concluded Mr Pretty.