In recent years the proportion of people owning their own home has fallen in the UK. This concerns me, especially as many people would like to own their own home but find at current house prices that is either difficult or impossible.
Present mortgage rates are helping. The typical interest rate at the start of a first time buyer’s mortgage is between 2.4% and 2.6%, rising to 4% to 5.7%. These rates are low compared with the rates past generations faced, making early years repayments more affordable.
The problem is the price of the property. In the Reading area a first time buyer can get a one or two bedroom flat for less than £170,000. The lower priced properties tend to be in Reading town rather than in Wokingham or the villages around. A £150,000 mortgage starting at 2.4% requires monthly payments of £664-£676.
This will be possible for some young people earning around the national average. For those on lower pay there are shared ownership options where the capital cost is far less.
I am discussing with the Council what more can be done to improve the range of affordable homes for sale and for shared ownership, to see if more can get a foot on the property ladder.