35% 'pessimistic on home ownership'

For sale signsMore than one third of people who do not own a home believe they will never be able to get on the property ladder, a study has found.

MoneySupermarket found that 35% of the 2,000 people it surveyed do not feel that home ownership will ever be within their reach, although this is a drop from 41% when similar research was carried out last year.

Some 29% of people who are not currently home owners thought that a new scheme recently announced in the Budget called Help to Buy, which will allow more people to buy a home with a deposit as low as 5%, would help them to get on the property ladder sooner.

The comparison website said that the number of first-time buyer mortgage products currently on the market is up by 17% compared with a year ago.

However, first-time buyers now need a 24% deposit on average to take out the deals on offer, compared with a typical 22% deposit needed in April 2012.