First-Time Buyers 'Bamboozled' By Low Cost Housing Deals

Three quarters of London's first-time buyers are not sure who qualifies for low cost housing schemes and may be missing the chance to get on the property ladder, according to new research carried out for the Mayor of London, Mr Boris Johnson.

The Ipsos MORI survey, commissioned by the GLA to inform the Mayor's draft London Housing Strategy, found that low cost home ownership schemes are shrouded in confusion for first-time buyers.

It also revealed:

• 75% of eligible Londoners think the income threshold is just £30,000 or less - half the actual threshold of £60,000. Therefore many middle income Londoners are unaware that they may qualify for help for 'shared ownership' or 'rent now, buy later' schemes.
• 20% surveyed said they were interested but had not applied for help, and over a quarter of these Londoners wrongly believed they earned too much to qualify, when in fact they would have been eligible
• 30% say they are unsure of where to go for more information about the various schemes on the market
• 50% surveyed mistakenly believe that they must be a key worker to qualify for the schemes.

Most are open to anyone with earnings between £20,000 and £60,000.


To clear up the confusion in the capital's housing market, Mr Johnson, through his First Steps housing programme launched in March, is committed to making the system fairer and easier for first time buyers to understand, with help for all, not just public sector key workers.

As well as improving the marketing and information around low cost home ownership schemes, the Mayor is planning to raise the joint income ceiling of applicants to £75,000, reflecting the high cost of home ownership in the capital. It is estimated that this move alone would make an additional 60,000 Londoners eligible for low cost schemes.

Mr Johnson said: "This research confirms what I have felt all along, that first time buyers are being overlooked in the current housing market and bamboozled by the intermediate housing deals on offer. It is a long established and natural desire for many to own their own property but in London, with the high costs of property, it is near impossible for many to get a foot on the property ladder.

"It is clear that the great demand is met with many large barriers but I am confident that our approach, backed by this survey, will help turn the home owning aspirations of thousands more Londoners into reality."

(CD/BMcc)