First time buyers lose hope

A survey of over 1400 aspiring first time buyers confirms that while many would like to buy their own home, 81% are losing hope of ever getting onto the property ladder.

The survey reveals aspiring buyers feel that landlords are still propping up prices at the bottom of the market – over 82% fear that this will remain the situation, keeping first timers off the first rung for the foreseeable future.

Dismayed by the mortgage situation too, over three quarters of wannabe first time buyers think that mortgage lenders will be even less generous in 2010 than they were in 2009.

Helen Adams, founder of the first time buyers’ website FirstRungNow.com comments:

"Things are not all gloom and doom as whilst there is the prospect of an economic dry patch, good borrowers with substantial deposits can often secure a reasonable mortgage. The Homebuy Direct scheme is still running which means that those who want to buy a new home can join a shared equity scheme – good news because 65% of first time buyers would buy a new home if they were priced more equably with other similar properties. On the subject of landlords keeping first timers out of the property market, the new higher – but not high enough - capital gains tax on non-primary residences should reduce the incentive for cash rich investors to plump for property, leaving more for first timers."

The on-line survey was carried out at FirstRungNow.com during the period February – June 2010 and includes a sample of over 1400 aspiring first time buyers visiting the site.