According to the ING International Survey on Homes and Mortgages of 15,000 people across 15 countries, the UK ranked second among consumers for tough lending restrictions, with Luxembourg top of the table.
Following close behind the UK in second place was Turkey and Spain, where 88% felt it was increasingly difficult for first-time buyers to access a property. The survey put the European average for increasing borrowing difficulty at 79% – 10% lower than the UK average.
Germany was the least worried about lending restrictions of the countries surveyed, however a majority of 59% still felt it was getting harder to get a foot on the property ladder.
Just under three-quarters of respondents said that a fall in house prices would benefit wider society, with 69% of current homeowners agreeing. This view was shared most strongly by renters, where 75% of Brits currently renting a property felt that expensive housing blocked their path to home ownership.
However, while the majority felt a fall in house prices would be helpful, almost half (46%) of European consumers said they would consider owning a house purely as an investment.
ING senior economist, Ian Bright, said: “Across the continent and in the US and Australia, consumers hold the view that first time buyers are at risk of having the door to home ownership slammed in their face. Even homeowners would consider it a good thing if house prices fell, which may indicate people are not only worried about the high level of house prices, but also realise that house prices cannot keep rising forever.
“The burgeoning economic recovery across the continent comes into play here. This will improve people’s lives in many ways but the ING International Survey shows something needs to be done if the next generation is to benefit from bricks and mortar.”
