CML: Help needed for indebted first-time buyers

Its latest research shows that student loans are leading to high levels of debt that are set to lead to a decline in home ownership unless something is done.

“While home-ownership remains a long-term aspiration for the majority, the reality is that for many young people the combination of house prices and student debt is reinforcing a lifestyle choice in favour of renting,” commented Bob Pannell, head of research at the CML.

Recent research indicates that young people are increasingly likely to borrow more or turn to parents in order to become a home owner due to rising debt.

Mr Pannell suggested that aside from these routes, schemes such as Open Market Homebuy, which will be launched in October, could help create more first-time buyers.

In addition to this shared equity loan scheme, Mr Pannell wants the government to do more to tackle the rise in debt which is making home ownership a distant dream for many.