First time buyer numbers 'hit lowest point in 26 years'

04-Jan-2007

The number of first time buyers in the UK has fallen to its lowest point in 26 years, new research shows.

According to a study by Halifax, the near 30-year low reduced the number of first time buyer mortgages by seven per cent to around one third over the course of 2006.

Furthermore, the study also found that 90 per cent of towns and cities are now unaffordable for first time buyers, with the average property costing in excess of £150,000.

As the market for first time buyers toughens, new companies are offering new services to help first time buyers buy new properties by working with the house-builders.

"We haven't seen the same boom in 2006 that we've seen before," said Mr Davies, a representative from Nicholas Michael Estate Agents.

"If Hips [Home Information Pack] are introduced in 2007, the burden may even be enough to put sellers off altogether," added Nigel Jones, director at John Francis, an independent estate agent in Wales.

In related news, over the course of 2006, the average first time buyer deposit exceeded £28,000, forcing many to approach their parents for financial support, according to research.

To find out how your parents can help you, see the FirstRungNow section on ‘How Parents Can Help’"> and contact a good mortgage broker.

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