Cooper Warns Against Opposition to Home Building

December 2006

Housing minister Yvette Cooper has warned that opposition to new home building will lead to increasing affordability problems for first time-buyers.

The preliminary results for the English Housing Survey have shown the percentage of under 30’s with mortgages dropping to 34% in 2006 from 40 in 2001.

The survey also showed that more and more parents are releasing equity in there homes to help finance there children’s desire to join the property ladder.

The Minister has also warned that parents could find themselves under increasing financial pressure to help there children onto the property ladder if opposition to new house building continues.

Fourteen thousand people a year are releasing equity by re-mortgaging there homes to help them buy another property, either for themselves or for family members, reveal new Government figures released this week.  The average amount of the re-mortgage is £74,000.

The figures also show that the percentage of younger people under 30 buying there own home with a mortgage has dropped.  In 2001 40% of under 30 household were buying with a mortgage and 33% were renting privately.  In 2006, the situation has changed with 34% buying and 41% renting.  These Government statistics are echoed through Manning Stainton’s estate agency, lettings and mortgage businesses across Leeds and Wakefield.

The average age of a first time buyer is now over 30 and our lettings and property management business based in North Leeds, continues to see record numbers of younger people registering on its mailing list.

On a refreshing note, the Wakefield area with its excellent road and rail links is earmarked for considerable residential property development over the next 10 years.

This additional supply should help to moderate the rise in property prices.