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Financial crisis 'turned property ladder into property mountain'
25/11/10
Edited by Bob Witham.The global financial crisis has turned the residential property ladder in to a "property mountain", according to one analyst.
Jon Brown of change-of-address websites iammoving.com and utilitell.com said those taking on the tricky ascent to home ownership will have to "set up base camp" for at least the next year in the private rented sector.
He added that restrictions on mortgage lending mean many prospective first-time buyers may have to "weather the storm" in residential property to let for the foreseeable future.
Mr. Brown claimed the government could lighten the load for house hunters by providing banks and building societies with incentives to increase their lending to first-time buyers.
However, the "fragile state" of the economy means such a move is "highly unlikely", leaving home ownership "out of arm's reach for most".
According to the Council of Mortgage Lenders, there were 18,600 loans for property purchase advanced to first-time buyers during September, down six per cent year-on-year.
