Majority of first-time buyers require large deposits

10 August 2011

First-time buyers face an increasingly challenge to get onto the property market, due to a combination of high living costs and increasingly large deposits required.

According to recent figures, 7 out of the 11 regions in the UK are too expensive for the average first-time buyer to purchase in. This means that only around a fifth of houses sold during 2011 will be purchased by first-time buyers - around half of the number that is healthy for the economy.

The number one concern for first-time buyers is the raising of a significant deposit. With living costs high and mortgage lending still restricted, first-time buyers are finding it difficult to raise the necessary funds.

The average house price paid by a first-time buyer has fallen 4.1% over the past twelve months, to £135,091. Susen Thiru, Halifax housing economist said: "It is encouraging that housing affordability for first-time buyers in general has improved significantly over recent years, as a consequence of the marked falls in both house prices and interest rates since 2007."

Is your house in the right price range for this large market of potential buyers? Get a house valuation from one of our recommended estate agents to find out the value of your home in the current market.

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