Sharp fall in number of first-time buyers

Seven out of 11 UK regions have been dubbed "first-time buyer black spots" by property website Rightmove, which found that the number of people in the market for a first home has fallen nearly 10pc since July 2009.

 The national average tumbled to 23pc in the second quarter of this year. The benchmark for a healthy market is normally held to be 40pc of acquisitions being made by first-time buyers.

 Only London remains above pre-credit crunch levels, with prospective first-time purchasers comprising 41.2pc of its housing market.

 Wales, East Anglia and the East Midlands hold gloomy prospects for new buyers, while Scotland's first-time purchasers represent just 16.8pc of its total, far below the 40pc required for a healthy property market.

 Miles Shipside, director of Rightmove, said the sharp percentage drop could have "serious implications" for local housing markets and first-time sellers.

"Even though the number of available mortgage products for this buyer group has improved, it appears that deposit requirements are still proving a major hurdle," he added. "Ongoing concerns over financial security and out-of-reach asking prices are further adding to the average first-time buyer's problem pile."

 The UK housing market continues its bumpy recovery in the wake of the property crash, with consumers held back by hefty deposit requirements and creeping interest rates.

 Two in five first-time buyers said raising a deposit was the biggest obstacle to finding a new home, while others blamed financial insecurity, the survey of 14,100 people found.

 More than half of all prospective buyers said houses in their area were overpriced, compared with seven in 10 new purchasers.