Finding the money to pay for a deposit is the biggest obstacle for first-time buyers trying to get on the housing ladder.
According to the Building Societies Association (BSA), raising the capital to make a deposit is proving to be a deterrent for would-be buyers, which is why many housebuilders are offering deals where the deposit is already paid.
The Council of Mortgage Lenders recently indicated that the average house price in Britain is almost £220,000, which means a ten per cent deposit would be £20,000.
Adrian Coles, director-general of the BSA, said: "The existing government schemes designed to help aspirant first-time buyers fail to recognise it is the deposit that is the problem rather than the monthly mortgage repayment."
Mortgage repayments, stamp duty, and legal and valuation fees are also factors that discourage many first-time buyers, according to the BSA.
However, new Halifax figures show that average house prices were down 1.1 per cent in November, which is likely to be welcomed by first-time buyers.
See Also: Property News (5994)
Date Published: 06 December 2007
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