Date Published 23 November 2012
More than one in ten people (11%) who apply for a mortgage are turned down with no reason being given., while 9% say they were turned down because they were self employed.
A further 29% say they were refused because their earnings were too low, and 24% were rejected because of their credit scores.
The findings are part of YouGov research conducted for Countrywide, which is looking into low levels of housing transactions. It estimates that 2.5m sales have been lost since the market downturn.
The YouGov research surveyed over 2,000 adults, including private rental tenants, home owners with mortgages, shared equity stakeholders, owner occupiers and those living rent-free.
The findings identified several major barriers to the housing market’s recovery and identified trends in consumer confidence since the last study took place in March.
The latest research shows that job insecurity is one reason for adults deciding not to buy a property (12%), while 63% of people currently in private rented accommodation said they could not afford to raise a deposit.
Grenville Turner, chief executive of Countrywide, said: `These findings reaffirm what we see on a daily basis. The shortage of appropriate housing at the right price coupled with lending issues is creating a perfect storm for the housing market.
`The issue of deposit affordability remains the major barrier to purchasing a home for renters and we have been calling for some time now for meaningful mortgage targets, to strong-arm higher loan-to-value lending.
`More appropriate credit is urgently required in the housing market, but lending volumes for house purchases are only one third of what they were five years ago.
`Banks need to be encouraged to lend at more favourable rates, with the introduction of higher loan to value mortgage products, to enable prospective buyers with a deposit of 10% or even 5% to get on the property ladder.
`Restoration of the mortgage market would help unlock the current stagnated property chain with the availability of more accessible mortgages, so that prospective property purchasers, both first-time buyers and down-sizers, can buy their home at a price they can afford and in a location they want to live in.`