First-time buyers fear huge debt

NEARLY three quarters of first-time buyers in London think getting a foot on the property ladder will leave them crippled with debt, a survey reveals today. Almost one third feel that owning a home is too much responsibility.

Spiralling house prices, coupled with the fear of rising-interest rates, are eroding people's ambitions for home ownership.

Among those who were renting, more than eight out of 10 thought buying a home would be beyond their reach and the same number thought the situation would be worse for future generations. Four out of 10 said they were not even tempted to become owners.

The Mori poll was carried out for the London Housing Federation. Berwyn Kinsey, head of the federation, said: 'Londoners are now uncomfortable with the level of personal debt buying a house involves.'

The average London house price is £277,000 or nearly nine times the city average salary of £31,000. As a result, the proportion of first-time buyers fell from 30% of all buyers in 2002 to 25% last year.