According to a recent report by mortgage insurer Genworth, the decline of high LTV mortgage lending in the UK has led to a 1.8m shortfall in the number of first time buyers since 2007.
The report highlights how tougher regulation and higher capital requirements for lenders have accelerated the fall in homeownership (now at a 25 year low of 65%, down from 71% in 2003), and dramatically reduced the number of people - especially younger households - who are able to buy their first home.
Using government and industry data, Genworth's analysis of first time buyer (FTB) numbers compared with expected demand shows people entered owner-occupation at a consistent rate from 1985 to 2006, with 10.26m buying their first homes, only slightly under the expected 10.29m based on population trends. But since 2007, an unprecedented collapse has taken place, creating a large and persistent deficit in FTB numbers. The combined effect over seven years from 2007 to 2013 is a shortfall of 1.8m first time buyers against expected demand.