First Time Buyers Struggling to Get Foot on Property Ladder Opt For Rented Accommodation

It has been well documented in the national news over the past year or two that the recession has had a negative impact on house prices in the UK, and many homeowners have faced the nightmare scenario of negative equity - particularly those who had purchased properties at the peak of the housing market at around the end of 2007. It would seem reasonable to think that lower house prices would therefore allow first time buyers a gateway of opportunity to make their first steps on the housing ladder.

The reality of the situation has however been quite different, with banks and building societies much more cautious about whom they will lend money to - and the amount of money they are willing to lend. Until very recent months, banks had been demanding a minimum 20% deposit commitment for purchased properties - a far cry from the 100% mortgages that had been available to home buyers a few years previously.

With such a high percentage figure needed for housing deposits, first time buyers and graduates have sadly struggled to take advantage of the dip in average UK house prices. Instead, many are looking to the future - saving money by taking out houses to rent or opting to rent shared accommodation with friends or work colleagues. Renting properties is therefore providing families and young professionals an opportunity to save up their necessary deposits with a more long term view to purchasing a house, once more flexible mortgage solutions become available to first time buyers.