First-time buyer 19-year low 'to be expected'

Posted: 22 Apr 2010 10:23:09 GMT

The news that the number of first-time buyers who are purchasing property in the UK is at its lowest level in 19 years is to be expected, according to one industry expert.

Helen Adams, managing director of FirstRungNow, says: "The condition at the moment is that first-time buyers invariably need quite a big deposit to buy their first home, which is very difficult to come by."

Her comments come in response to new data from GfK Financial, which reveals first-time buyer numbers have dropped below 350,000 for the first time in two decades.

Furthermore, the figures show that while some 800,000 people under the age of 30 would like to get a foot onto the property ladder this year, less than half will actually be able to afford to do so.

Ms Adams states that this is because lenders are reluctant to offer 85 or 90 per cent mortgages, meaning that many first-time buyers will need to borrow money off their parents to raise the necessary funds for a deposit.

According to FindaProperty.com, the average value of a first-time buyer home currently stands at £155,242.

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