Research by the National Housing Federation, has found that the majority of people fear the debt associated with home ownership. The research showed that 71% of people believed that buying a home today meant taking on too much debt.
Over 80% of younger respondents are finding it difficult to get onto the property ladder for the same reason. Sixty seven per cent of respondents thought that shared ownership was a possible solution, this being the most popular choice in the South East and London, while those in East England and East Midlands were most concerned about taking out mortgages and putting themselves in too much debt.
The study also found that 77% of people were concerned about having to move away from where they grew up to find a home that they could afford. A further 81% said that the Government should increase spending on affordable housing to address the problem.
Our view
Your home is one of the biggest investments you make and given current prices, it is little surprise that people fear borrowing so much. If interest rates rise, people who have borrowed at their limits may get into financial trouble.