First time buyer lending increases but starter homes remain out of reach for many

Conflicting reports have surfaced, confusing the matter of the first time buyer’s market and starter homes.
On the one hand, figures reported by the Council of Mortgage Lenders have said that there has been a large increase in the amount of money lent out to first time buyers. December 2015 saw £4.5 billion go to first time buyers to help them buy their homes. This was an increase of 18 per cent compared to December 2014.
These seems to indicate that more people are borrowing, so more must be buying, but the figures only state and amount. The fact people are having to borrow more in order to buy a home is likely boosting the number.
Furthermore, a report has come out, commissioned by the Local Government Association (LGA), in which Savills gathered figures which indicated that the starter home market is still poor.
Apparently, the starter homes which were built to be affordable are not as affordable as they need to be. Reportedly, in order to qualify for a starter home in 220 council areas across the country, people have to be unable to afford the home, paradoxically.
Housing spokesman for the LGA, Peter Box, said “In some places, such as the North-East and Midlands, the scheme will give people better chance to get on the housing ladder.
“However, a national scheme will not work for every area and fewer people will benefit from starter homes in areas where the housing crisis is most acute.”

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