Deposits 'still holding back' first-time buyers

Posted: 05 Jan 2010 10:40:38 GMT

The requirement for a significant deposit is still holding back first-time buyers from stepping on to the first rung of the property ladder, one expert believes.

Helen Adams, managing director of FirstRungNow, says that without financial assistance from parents it is "very difficult" for many first-time buyers to purchase a home at the moment.

She acknowledges that recent figures from the Halifax First-Time Buyer review - which revealed that property in the UK is now more affordable for those wishing to purchase their first home - are great but more could be done.

Ms Adams believes that stamp duty should be abolished altogether for first-time buyers.

"It cam be a significant expense at the time that people are trying to pull together a deposit and it just adds to the difficulty of the situation," she adds.

Latest figures from the National Association of Estate Agents have revealed just 19 per cent of people purchasing property in November 2009 were first-time buyers.

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