First Time Buyers Strife(June 20, 2013)
Figures from housing charity Shelter show that first-time buyers in Liverpool are having to save for longer to find the 20% deposit typically needed to secure a home.
Liverpool MP Steve Rotheram said the double whammy of rising rents and tighter lending criteria by banks was threatening community cohesion across Merseyside.
Mr Rotheram said more needed to be done to help people onto the property ladder after statistics revealed it is taking years for people to save for deposits.
His comments came as Sefton council leader Cllr Peter Dowd attempted to justify building thousands of homes on Green Belt land in the borough.
The Shelter data revealed the average working couple in Liverpool needs four years to save for a deposit on their first home, while the average single person faces a nine-year wait.
Mr Rotheram said: “As private sector rents increase and people are forced into it, not only are there problems with trying to move in the future but [also with] trying to save up while paying affected rates.
“The knock-on effects are that people are having to move to areas with cheaper rents and we are getting a breakdown in communities because people are constantly moving in the private sector.”
Mr Rotheram added: “The Government needs to do more to force banks into spending appropriately the money that we as tax payers are investing into the banking sector.
“The difficulty is that what people are having to do while saving up is trying to find accommodation in the private rented sector. As prices there are being forced up by things like the bedroom tax, that’s obviously causing them an added difficulty and it’s only going to get worse.”
Officials at Shelter claimed the problems in the housing market threatened to create a generation doomed to rent, and argued the problem was partly down to a lack of affordable homes.