Mortgage Industry News

← Back

Cheap mortgage could ease affordable housing shortage

Date: Thu, 25 May 2006


Cheap mortgage deals could help many people who are struggling to find an affordable home.

Recent research suggests that the lack of affordable housing in the UK is set to continue, even though record numbers of houses are being built.

The report by investment company Premier Guarantee concluded that the shortage of low-cost housing is now reaching a "crisis" point, even though 17 per cent more homes were build during the first three months of the year than in the same period in 2005.

Just 12 per cent of applications for new homes in the first quarter of the year were made by housing associations – an 11 per cent decreased on 2005 levels.

It is now estimated that nearly 75 per cent of UK residential properties are now worth over £150,000 – making them out of reach for many first-time buyers unless they secure a very cheap mortgage offer.

Robin Plaster, sales and marketing director at Premier Guarantee, said: "Although there has been a substantial increase in new house building, any notion that the housing crisis is being tackled or that the situation for first time buyers is likely to ease, can be firmly dismissed."


© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.