First Time Buyers face increased restrictions in 2012

Latest research from property estate agents Rightmove revealed only 23 per cent of people intending on buying a property over the next 12 months

will be first time buyers, the reason being primarily due to the lack of deposit available in order to enter the market. Last years first time buyers forecast illustrated a slightly more positive outlook with 26 per cent intending on buying a property within 12 months. The current figures are said to be around 20 per cent lower in contrast to the typical levels prior to the credit crunch.

More than half of potential first time buyers hoping to make their first house purchase in 2012 expect to put down a deposit of £20,000 while the overall average deposit is around £22,000. 36 per cent of potential buyer’s main fears came from raising sufficient funds to meet the deposit requirements. This may lead to increased number of enquires from applicants seeking first time buyer mortgages through us as a London mortgage broker. The report also found nearly two thirds of intent first time buyers thought that property prices in there local area were above what they consider to be fair and reasonable.

Miles Shipside director of Rightmove, said “With prospective first-time buyers even thinner on the ground than at this stage last year, sellers and their estate agents operating at the lower end of the market will need to fully understand the DNA of this group if they are to capture a sale.

The average of a first time buyer next year will be 32 according to the report from Rightmove, however those renting and wanting to buy are typically older. Miles Shipside added “Given the reality of the ongoing economic situation, many trapped renters are having their home-ownership dreams postponed to their forties at best, or permanently shattered at worst.”

The market for first time buyers in London remained robust as it was the only area where the proportion of first-timers next year predicted to be a “healthy” level of 41.9 per cent in 2012. This drops to 23.6 per cent for the West Midlands in second place. The South West showed the lowest proportion within UK with only 17.1 per cent expect to be first timers next year.