First-time buyers 'put off' housing market

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First-time buyers 'put off' housing market

Wed 27th Dec 2006

This year has seen a slump in the amount of first-time buyers, representing the lowest level since records began it has emerged.

Property information firm Hometrack undertook research into the housing market and found that only 15 per cent of property sales in 2006 involved first-time buyers.

With the seasonally adjusted average house price in the UK standing at £187,995 according to Halifax, first-time buyers are finding it increasingly difficult to get a foot onto the property ladder.

Director of Hometrack Richard Donnell said: "House prices are being pushed along by people who are already on the ladder and are selling up to buy another house. But a growing number of young people are being left behind."

Hometrack found that of 1.1 million property purchases in 2006, just 175,000 were bought by young people who required no financial assistance from their family.

London and the south-east continue to dominate the house price rankings and in the borough of Chelsea and Kensington, a 30 per cent increase compared to last year has been reported by estate agents Knight Frank.

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