First-time buyer numbers fall
Rising property prices have seen the number of first-time buyers in the UK fall to its lowest level since 1980, a new report has revealed.
Statistics compiled by Halifax showed just 300,000 people were able to get on to the property ladder during 2007 and that they paid an average of £175,093 for their first home.
That average value has increased by 15 per cent in the past 12 months and 82 per cent since 2002.
Halifax estimates that increased residential property prices mean first-time buyers can no longer afford to purchase an average house in 96 per cent of the UK's towns or even a terrace in 71 per cent of towns.
Martin Ellis, Halifax's chief economist, said there is no quick fix for the affordability problems facing first-time buyers.
However, he added: "A more subdued housing market over the next few years is a positive step for potential new entrants."
The average first-time buyer now has to spend a record 20.6 per cent of their income on mortgage interest payments, according to figures compiled by the Council of Mortgage Lenders.
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