Abbey mortgages finds first-time buyers struggling

One in three potential first-time buyers want to buy this year - but only 18 per cent are confident they will be able to, research from Abbey has found.

Affordability would appear to be the biggest problem faced by people seeking to own their own home. Fewer than one in four (23 per cent) of the people polled said they would be prepared to pay more than £150,000 for a house, while Nationwide today revealed that the average cost of a home in the UK is £151,757.

In order to get onto the property ladder, prospective buyers are exploring less traditional methods of buying their first home.

Thirty-seven per cent said they would consider buying through a housing association, with 31 per cent happy to club together with family or friends to get their first property.

One person in four said they would consider buying a wreck, as it would be cheaper.

Abbey's chief economist, Barry Naisbitt, remarked: "Our research shows just how tough people are finding it to get on to the property ladder.

"It's clear, however, that potential homebuyers are trying to boost their chances of owning."

Abbey found that nearly 60 per cent of prospective buyers said they would save for a deposit and more than half hope to have a deposit of ten per cent or more. One person in eight (12 per cent) said they intended to forego a deposit and opt for a 100 per cent mortgage.

The most popular reason for wanting to buy was to get onto the property ladder, with almost one in two people (49 per cent) giving this reason.

Forty-one per cent of those asked said they wanted to buy to stop paying rent, with 42 per cent saying they wanted their own space and independence.

Despite media reports of falling housing prices leading to 42 per cent of prospective first-time buyers believing house prices are set to fall, one in four (27 per cent) of those asked said they wanted to buy as an investment for the future.