The chief executive of Britain's largest housebuilder, Barratt Redrow, has warned that young first-time buyers are facing the most challenging conditions since the financial crisis, as rising interest rates, higher student debt, and wage stagnation make home ownership increasingly unattainable.
David Thomas, who is stepping down as CEO, told the BBC that a combination of factors is making it 'challenging, very, very difficult' for young people to get on the housing ladder. He noted that higher student loan repayments reduce available earnings for mortgage assessments, shrinking the pool of eligible buyers.
Thomas called on the government to introduce a package focused on first-time buyers, adding that housebuilders would be willing to contribute. He warned of 'generational inequalities' and said the country faces 'very big implications' if young people are forced to rent permanently.
Separate data from Zoopla shows there are 6% fewer first-time buyers in the market compared to a year ago. However, those still buying are targeting homes worth £10,000 more than last year, with an average price of £254,750. In London, the average first-time buyer price has surpassed £500,000 for the first time, reaching £502,250.
