House prices warning as now is ‘worst time to be first-time buyer in 70 years’ | Personal Finance | Finance [Video]

Building societies are calling for urgent help for young people who have been priced out of the property market.

Radical action is needed to turn around a slump in the number of people able realise their home owning dream, according to the Building Societies Association.

The total number of buyers with a home loan has fallen by 2 million to 8 million in the past 20 years against the background of spiralling prices and interest rates.

The BSA says first time buyers are facing the biggest struggle to get a foot on the property ladder in 70 years.

Its ‘First Time Buyer’ study calls for a major shake-up of the mortgage market, property tax and planning regime.

This would include allowing more young buyers to take on large mortgages equivalent to borrowing more than 4.5 times their salary.

They are also recommend changes to property taxes to encourage older people to move out of …