A Halifax survey has suggested that around two-thirds of young people who do not own their home, believe they have no prospect of getting on the property ladder. With higher deposits and strict lending criteria, many potential buyers have been put off over the past few years.
The poll of 4,000 non-homeowners for the Halifax found that many believe the banks do not want to lend to them and will "find excuses" to turn them down. The Halifax described this as "undue pessimism".
Stephen Noakes, commercial director of Halifax Mortgages, said there were two key issues dissuading potential first-time buyers from getting on the housing market. "The first one is the size of the deposit that's required today, and the second factor is fear of rejection and a number of prospective first-time buyers, about two-thirds of them, believe that most first-time buyers are rejected."