First-Time Buyers being Priced Out

Due to a huge hike in property prices over the last two years, the number of first-time buyers entering the housing market has declined dramatically. A recent Halifax survey reveals that, approximately 92% of first-time buyers cannot afford to buy properties in 548 of the UK's 597 main towns.

Although 361,000 first-time buyers got on to the property ladder for the first time last year, the figure was down from 532,000 in 2002. First-time buyers traditionally account for half of all home purchasers, but last year's figure reveals that they were only responsible for 29% of 2004's property transactions, with the problem of affordability most acute in the South.

The survey revealed that, the average age of a first-time buyer has now risen to 34, while the median price paid has reached £131,024 and the average deposit is now £26,455.

"Affordability has become a serious issue, making it very difficult for those looking to get onto the housing ladder for the first time," said Halifax chief economist Martin Ellis.