A new poll published today shows that 95% of people think that people trying to buy their first home these days find it financially difficult. And affordability seems to be worsening. 64% of current home owners think that first-time buyers find it much more financially difficult than when they first bought.<br><br>
This is leading more and more first-time buyers to seek financial assistance from parent or grandparents when purchasing their first home. The poll reveals that one fifth (21%) of home owners who bought for the first time in the last five years financed the deposit with assistance from a relative.
The results of the poll, conducted by YouGov for the House Builders Federation, reflect the depth of concern about the affordability of housing in Britain and whether the housing needs and aspirations of the British people can be met.
The poll is released on the day Kate Barker addresses a House Builders Federation conference to examine the progress made a year after her influential Review of Housing Supply was published by the Government. The results of the poll confirm the need for an additional 70,000120,000 homes to built each year, as recommended by Kate Barker, to stop people being priced out of the market.
Two-thirds of people surveyed expressed concern at the consequences of Government policy that seeks to build higher density housing on brownfield land. 64% of people say that: the area I live in could NOT accommodate more new housing at higher densities (e.g. flats and townhouses).
While house builders have responded very successfully to the planning guidelines since 2000 by raising densities, there is a danger that public acceptance of this policy will diminish, particularly if the market is unable to offer enough homes of all types for people to live in.
This poll shows the depth of the affordability crisis, say Rob Ashmead, Chief Executive of the House Builders Federation.
People know how serious the housing problem is and are concerned that building at higher densities on brownfield land may not address their needs. The next Government must focus on increasing supply, not subsidising demand, if a long-term solution to the housing shortage is to be secured.
ENDS
For more information and to arrange interviews please contact Katie Thompson at Portland on 020 7421 6120 / katie.thompson@portlandpr.co.uk
Notes to Editors
YouGov questioned a representative sample of 2644 people online throughout Britain between 8 and 11 April 2005. www.yougov.com
The House Builders Federation (HBF) is the principal trade federation for private sector house builders and voice of the house building industry in England and Wales. The HBFs 300 member firms account for over 80% of all new houses built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies. www.hbf.co.uk
The conference Planning and the Market: Barker One Year On is being held on Monday 18th April 2005 at the Royal College of Physicians, London, in association with the HBF and Cripps Harries Hall.
Results of YouGov poll for the House Builders Federation
April 2005
Total sample size (owner occupiers + private/social rent): 2644.
Total sample of home owners: 1749
There is near universal concern about the cost of getting onto the property ladder, with 95% of all respondents stating that people trying to buy their first home find it financially difficult.
Opinion also shows that people think it is getting harder to buy. 64% of homes owners think it is much more financially difficult for people to buy their first home these days than when they first bought; 20% think it is about as difficult; with only 5% considering it easier.
One fifth (21%) of people who bought a property for the first time in the last five years received assistance from relatives e.g. gift / loan from parents or grandparents to finance the deposit. 39% financed the deposit through their own means e.g. savings, salary or bonus; with 39% using commercial borrowing e.g. 100% mortgage or overdraft to finance the deposit. [15% of the sample of home owners had purchased their first property in the last five years.]
14% of home owners have at some time helped a family member purchase a property. 8% helped with a gift towards the deposit; 4% with a loan towards the deposit; 1% through a joint mortgage; and 1% making an outright gift of a property.
Two-thirds of people surveyed expressed concern at the consequences of Government policy that seeks to build higher density housing on brownfield land. 64% of all respondents said that: the area I live in could NOT accommodate more new housing at higher densities (e.g. flats and townhouses); one fifth (23%) said that the area they live in could accommodate more; and 13% did not know.
Half of all respondents (51%) feel that their current home provides the right number of rooms for them (and their family); with about one quarter (27%) saying they have more than enough room; and another quarter (22%) saying they do not have enough room.
However, the pattern changes with age. A third of people over 50 (34%) say they have more than enough room; whilst a third of people aged 30-50 (30%) say they dont have enough room. This suggests that many older people are retaining larger family homes, while many parents currently raising children are in smaller homes with less space.
Over half of home owners (56%) would retain their current property if their household was to reduce in size e.g. children leave home or a partner dies; with 24% doing so even though their existing home provides more than enough room for the size of their household. Only 12% would seek to downsize to a smaller home immediately, and 10% would plan to downsize in a few years.
Meanwhile, many people are finding that they are unable to realise their need for more space as their family circumstances change, e.g. they have more children. One quarter (26%) of home owners whose family circumstances had changed in past five years had moved to a larger home, and another 22% had extended e.g. a loft conversion. But half (51%) had remained in their existing home with a fifth (18%) wanting to move or extend but unable to afford to, and a third (33%) just adapting their lifestyle. [51% of all home owners said that their family circumstances had changed in the last five years such that they needed more room.]
