Fewer first home buyers in UK market than ever

Published 25th Jan 2011

The number of financially independent first home buyers in the UK has fallen by 100,000 per year since 2006, the latest figures have shown.

According to the Chartered Institute of Housing's latest UK Housing Review, the number of buyers in the entry level 10 per cent or less deposit category fell to 28,000 compared to 245,000 four years ago, which obviously accounts for a huge downfall in demand in the lower end of the British housing market.

The number of first home buyers able to put a deposit down without help from family has also been steadily falling by 100,000 year on year. CIH Deputy Executive Richard Capie said more needed to be done to make sure the next generation of home buyers weren't priced out of the market.

"Deposits are now at a 40 year high and prospects for first home buyers look bleak", said Capie. "The deposit barrier has become a mountain that more and more potential home owners simply can't climb without help from mum and dad. While we don't want to return to the days of 110% mortgages and irresponsible lending, it is clear that the pendulum has swung too far in the other direction."

Source: ' TMC '

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