Updated: Friday, 23rd August 2019 @ 11:02am

Would-be first time buyers forced to rent despite falling property prices, claim Manchester mortgage advisers.

Would-be first time buyers forced to rent despite falling property prices, claim Manchester mortgage advisers.

By Deborah Trickett, Ryan Gallagher, Will Unwin & Steven Bell

Desperate first-time buyers across Manchester are being squeezed out of the property market, as the effects of the recession continue to grip the region.

Mortgage advisors in the area say that while house prices in Greater Manchester are in decline, prospective buyers are being forced to rent because lenders are not lending.

Manchester based mortgage advisor Stella Donnelly, 63, said that before the recession lenders would give out loans to people who had previously been bankrupt.

But now, first-time buyers are being refused mortgages even if they have an unpaid gas or mobile phone bill.

“The lenders are not being reasonable,” said Ms Donnelly, “I actually don’t think they are in the real world – they live in ivory towers.”

Meanwhile, Angela Kahn of Belvoir Letting Agency in Chorlton said Belvoir has seen an increase in business throughout the recession.

“The recession has caused families to sell their homes and rely on renting property,” she said.  “Now young professionals are renting because they can’t afford to buy a home.”

A recent report by the Centre for Housing Policy found that since 2006 as many as 100,000 first-time buyers have been excluded from the property market.

And a 2009 analysis by the Council for Mortgage Lenders found that four out of five of all under 30s looking to get on the property ladder for the first time got help with their deposits from their parents.

But Ken Rushworth, head of Manchester financial consultancy Manning Rushworth, said the lack of lending has meant the market for first-time buyers has now “virtually disappeared.”

“The majority of the mortgage business is bankrupt,” he said.

“There are no lenders out there.”

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