Long-term factors ‘squeezing young consumers’

Mr Holmes, operations director at First Rung, insists that it is the spectre of unmanageable long-term debt levels and not concerns over stamp duty or the tendency to overspend that is keeping young consumers off Britain’s housing ladder.

To make his case, Mr Holmes points out that the typical first time buyer in London faces a £200,000 debt management burden and the repayment demand for a single month would match the average stamp duty cost.

“When the press are concentrating on the single issue of ‘closing costs’ only, they are ignoring the real problem, long-term affordability,” he said.

“Even selling a kidney on e-bay will not alter the fact that in Greater London the average first time buyer is looking at ten times salary for the average property,” he added.

Earlier this year, the Consumer Credit Counselling Service forecast that homeowners throughout the UK would face significant financial pressures during 2007.