One family struggling to get on the housing ladder spoke to ITV1's Daybreak about the problems they face. James and Sarah live in Stratford-Upon-Avon with their 8-month-old son. Despite wanting to own their own home they have no choice but to rent because they can't afford a deposit. James said:
"At the moment you need minimum 10% if not 15% to 20% deposit to get a decent mortgage rate. And with the price of properties you're looking at £25,000 upwards which is a big sum to save up for people."
Housing Minister Mark Prisk has said that the multi-million pound FirstBuy scheme could help up to 27,000 families.
It helps by reducing the amount of deposit buyers have to find.
The housing market is expected to get stronger by the end of the year, according to a survey by estate agents. They are predicting a boost on the back of Government initiatives which should make mortgages more available. Expectation for future sales are at their highest level for two years.
59% of people who do not own their own home believe they will never be able to afford one in their own area, according to a new poll by the housing charity Shelter.
The figures come from a new poll by the housing charity Shelter.
Shelter analysts said someone putting away £200 a month would have to save for nearly 16 years to have enough for an average deposit.
44% said they believe their children or future children will not be able to afford a decent home.
Housing Minister Mark Prisk will set out details of an extension to the FirstBuy scheme.
- £40 million will go to 41 developers to help 2,500 people onto the property ladder
- The money is the first allocation from a £280 million pot for first time buyers
- Under the FirstBuy scheme house hunters are offered an equity loan of up to 20%
The Government is to make a further £40 million available to help people onto the property ladder, through the launch of a new FirstBuy scheme.
Housing Minister Mark Prisk will make the announcement later today
2,500 first time buyers are set to benefit, but critics of the scheme say it is not far reaching enough.