Growing affordability constraints are stopping first home buyers from getting into the property market, new research has found.
According to a recent poll by Loan Market Group, 65 per cent of respondents listed housing affordability as the main market issue facing first home buyers, while just 12 per cent said it was interest rates.
Loan Market chief operating officer Dean Rushton said there was an even stronger response in the 25 to 40 year age group, with 70 per cent of those surveyed listing house prices as their major concern.
“With rates on hold and unemployment continuing to fall, First Home Buyers are surveying their options in the market,” Mr Rushton said.
“The upcoming federal budget provides the government with an opportunity to offer real assistance to first home buyers. Most observers would concede that the First Home Savers scheme has failed to have any meaningful impact.”