Shropshire estate agent calls for more homes to be built to help first time buyers

Alistair Hilton, associate partner at Balfours, which has bases in Shrewsbury and Craven Arms, said things are tough for first-time buyers across the country at the moment.

Nationally, home ownership rates for the under 45s have declined steeply since the global financial crisis, while older age groups have either maintained or increased their levels of ownership.

Mr Hilton said it was down to a number of factors including lack of supply, falling interest rates, and the difficulty in getting a mortgage.

He said: "There is only one thing that will really sort this problem and that is building. We need to build many more houses than we are at the moment.

"That is down to the Government and builders. It is not just first-time buyers it is affecting but second-steppers and all sectors of the market.

"It is all affected by lack of supply, the demand is there and interest rates are low, but there is not enough housing being built to balance what we have in demand."

In Shropshire, Mr Hilton said while the council has been able to demonstrate a five-year housing supply, builders needed to then fulfil those sites.

He said: "We still see the issue with supply and demand.

"They often concentrate their efforts on development in areas that are highly populated, the areas you see lots of building include Shrewsbury whereas around Shropshire will be much less.

"Builders want to know there is demand for their product, and people want to move in where there are amenities in the area."

Figures, based on data from the English Housing Survey released in February, came to light in a report on retirement released last week by Aviva, the insurance giant.

Estate Agents in Shrewsbury

Part of the explanation for the younger generations' struggle may be that first-time buyers, even those with a substantial deposit, are struggling to generate the income required to be accepted for a large mortgage, particularly in the south of England.

According to research by Moody's, the credit rating agency, the loans advanced to borrowers in the south over the past two years have been up to a third higher relative to income than in the north of the country.

Mr Hilton added that with rent prices also high, first time buyers struggle to come up with what is needed for their deposit, because of small margins between salary and rent.

Steven Becker, an analyst at Moodys credit rating agency, said: "Mortgage accessibility is restricted for first-time buyers, who need up to 15pc higher deposits compared with non-first-time buyers."

Wage inflation is unlikely to solve the problem for younger generations.

Alistair McQueen, savings and retirement manager at life company Aviva, said: "Those not on the housing ladder are facing a first step that is becoming higher and higher."

He highlighted that in 1991, 67pc of the 25-34 age group were homeowners, but that by 2014 that had fallen to just 36pc.