The chief finance officer of a PropTech company says the effects of the stamp duty holiday on house prices must not consign people into thinking they face a lifetime of renting.
Various indices put the average house price rise in the past year at between 7.0 and 11.0 per cent.
In light of this, Chris Hutchinson, CFO of rental platform Canopy, says cash-strapped renters need more than incentives to help them get on the property ladder.
“While the temporary [stamp duty holiday] has helped some buyers in their pursuit of homeownership, this was never going to be a long-term solution and barriers to homeownership remain firmly in place” he says.
“Coupling this with where we are in the disparity between average salary and average asking price means Generation Rent face an uphill struggle on their way to homeownership.
“Nobody should feel that they are stuck with a lifetime of renting. But with tenants plugging thousands into the rental system each year, this money can feel like a waste.”
And he continues: “Making rental payments count towards people’s credit rating will make it easier and quicker to secure an affordable mortgage when the time is right.
“Rather than temporary support measures and quick prop ups for first-time buyers, it could make far more difference to Generation Rent if we could have them equipped to buy from the very start of their rental journey.”
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