Theresa May's action on home ownership "has been a disaster", and government should step in with a tax break to help young people onto the housing ladder, estate agent Haart has said.
Chief executive Paul Smith said this morning's Council of Mortgage Lenders figures underscored just how dysfunctional the market was becoming, slamming the government's "feeble housing white paper" for failing to tackle the big issues.
CML this morning revealed that home buyers borrowed £10.8bn in May, up 16 per cent on last year, with first-time borrowers accounting for £4.7bn of that.
The typical loan size for first time buyers increased from £136,300 in April to £137,000 in May while the average household income decreased to £40,500 from £40,700. This meant the income multiple went up from 3.57 to 3.59.
Paul Smith, chief executive of Haart estate agents, said: “Affordability is clearly reaching a critical juncture as the average loan size increases whilst the average income decreases. Although rising first-time buyer borrowing demonstrates the appetite for home ownership in the UK, young people should not be left to stretch beyond their means, and government should intervene with a tax break as a quick and straight-forward way to help them get onto the ladder.
“Theresa May’s legacy on home ownership has so far been a disaster. The ‘just about managing’ are further away from owning their own home than they ever have been, and the government’s feeble housing white paper did not go anywhere near enough to get housebuilders building and the market moving.”