First-time buyer levels drop below 1 in 4
Tuesday, 15 February 2011 1:05 PM
The proportion of buyers intending to purchase a property for the first time over the year ahead has dropped to below one in four, according to new research.
In its opening First-Time Buyer Report of 2011, Rightmove found that prospective first-time buyer levels dropped from 25.5 per cent in the final quarter of last year to 22.8 per cent at the beginning of 2011.
This is the second-lowest figure the company has ever recorded – only fractionally higher than the 22.2 per cent it noted in the third quarter of 2010.
Rightmove found that mortgage challenges remained the main factor suppressing the number of first-time buyers in Britain.
The survey revealed that 44 per cent of prospective purchasers had concerns over raising enough for a deposit, while ten per cent cited meeting monthly repayments as their biggest worry.
Miles Shipside, director of Rightmove, commented: "The desirable level of first-time buyers for a healthy market is typically around 40 per cent of all buyers, almost double the current level, as they perform a vital function in completing chains and aiding fluidity throughout the housing ladder.
"These findings are likely to heighten government concerns about the scarcity of first-time buyers and it is imperative for the long-term health of the market that a solution to this issue is found," he added.
As we write, Grant Shapps is hosting a first-time buyers lending summit.
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