Commentators speculating about possible measures for FTBs have been in overdrive ahead of the Budget tomorrow with proposals including a broker call for the government to guarantee 100% mortgages, to stamp duty incentives or cuts.
Average house price growth has risen 48% since 2005, according to Post Office research, against an increase to the average FTB income of 37%.
Just six out of ten parents of millennials can afford to help with a deposit, but those who do share a third of their wealth at £18,396. Just five per cent of parents of millennials can pay the full deposit.
Owen Woodley, managing director, Post Office Money, said: “Our recent research coupled with speculation that Wednesday’s Budget announcement will look to appeal specifically to the millennial generation, presents a hopeful outlook for first-time buyers.”
Meanwhile, HMRC figures out today show property transactions rose a sturdy 9.6% in October against the previous year, with 105,260 seasonally adjusted transactions.
Shaun Church, director at mortgage broker Private Finance, said: “While there have been no impressive monthly increases in the number of property transactions this year, annual comparisons are favourable. Transaction levels are also now back to where they were before the stamp duty changes which came as a shock to the system in 2016.”
He added that to improve the outlook for next year, both property supply and stamp duty need to be addressed.
“The industry will be hopeful that tomorrow’s Budget unveils decisive action on these two fronts,” he added.