The Building Societies Association has released a report suggesting that the affordability of a mortgage for first time buyers is at its most difficult in 70 years. This is due to:
Conclusion
House prices have risen 240% since the year 2000 but earnings have only risen 112% (source: Office for National Statistics and HM Land Registry). This adds to the problem and perhaps a new appraoch is required by government.
Our view is to allow pension schemes greater scope to invest in or develop residential property. There are acres and acres of derelect factories, empty shops and more that could easily be developed by pension fund capital to deliver residential accomodation.
In directly, the tax relief we receive on our pension funds encourages us to save but if there were added incentives such as
The above relatively simply additional permissions would help at both ends of the social spectrum, those starting out and those planning for the end.