Tembo analysis finds high borrowing requirements for first-time buyers in English cities
What happened
Tembo analyzed the Your First Home scheme across 17 English cities. The analysis found that even with a 2.5% deposit and a 20% government equity loan, lower earners would still need to borrow more than 4.5 times their income in 76% of the cities studied. The scheme could reduce the time needed to save a deposit from nearly three years to 18 months.
From finanznachrichten.de
Why it matters
The findings indicate that the borrowing barrier remains high for many potential buyers, even under the new scheme. The analysis also noted that while buyers in Bristol were £111,000 better off after five years than renting, buyers in London were £4,514 worse off.
From finanznachrichten.de
Who's involved
- EnglandThe geographical area where Tembo conducted the analysis of housing schemes.
- governmentThe governing body that announced the Your First Home scheme analyzed by Tembo.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- governmentSpeculative
The government might face challenges in achieving housing affordability goals due to persistent borrowing barriers.