Saturday, February 26, 2011
Fewer rabbit hutches = a good thing
Britain's biggest housebuilder has warned first-time buyers that they are going to find it even harder to get onto the property ladder. The company is moving away from building homes for FTBs because young people are finding it too difficult to get mortgages. "First timers are being pushed into the private rental market, but that also requires new homes to be built." Mark Clare, chief executive of Barratt Developments, said there is a "severe" lack of new homes, with only about 100,000 new homes being built each year, while 200,000 to 250,000 new family units are created annually as housebuilders concentrate on larger properties. "The gap is getting bigger and bigger," he added.