The findings, comparing international trends in housing tenure and mortgage finance, show that despite falling interest rates and mortgage costs, a decade of rising house prices has seen the proportion of first-time buyers in the UK fall more sharply than in the rest of Europe, the USA and Australia.
Michael Coogan, director-general of the CML, said: “The research findings present a clear case for the government to look afresh at how tax and benefit policy is hindering the growth of home-ownership and adding to particular problems for first-time buyers.
“The tax burden on homeowners continues to grow but indexing the thresholds for stamp duty, inheritance tax and capital gains tax in line with house price inflation would help ensure that it does not worsen in future.”
Meanwhile Rightmove’s House Pricing Index reported a 1.7 per cent or £3,200 average fall in asking prices between 10 October and 13 November, indicating that sellers are valuing properties more realistically to achieve a sale.
Miles Shipside, Rightmove’s commercial director, commented: “This month we are seeing a big fall as sellers and their estate agents adjust asking prices in a quest to rekindle buyer interest.
“It’s the third biggest drop we’ve seen since we started our Index and reflects the fact that prices had become too high in most parts of the country.”
Andy Frankish, operations director for Mortgage Talk, said: “One factor that is becoming more apparent is that sellers are accepting the advice of reputable estate agents when pricing their homes, rather than placing their houses on the market for what they think they can get away with.
“This brings much more realism into the buying and selling arena, as people’s expectations find a more acceptable level.”
