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FTBs face daunting deposit

The average deposit paid by first-time buyers has rocketed over the last five years, jumping 250 per cent to £22,547 from £9,019.

Figures from market analyst Datamonitor provide evidence that FTBs are being priced out of the market and are finding it increasingly difficult to get on the housing ladder.

People looking to buy in London have fared even worse, seeing a 265 per cent jump in deposit to £37,123 from £14,062 in 1998.

Datamonitor say the problem will only get worse until lenders, property developers and the Government co-operate to ensure there is good quality and affordable housing. The report says the proportion of FTBs is falling, now accounting for just 29 per cent of loans advanced for house purchase compared with 38 per cent of the market in 2002 and 48 per cent in 1999.

The average loan for first-time buyers has increased to £80,016 now from £51,038 in 1998.

Datamonitor analyst and report author Alex Boorman says: “First-time buyers are staying away from the market. Property prices are being buoyed by other areas such as buy-to-let, where ironically growth is being fuelled by first-time buyers who cannot afford today&#39s prices.”

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