Despite market conditions improving slightly, many first-time buyers (FTBs) are still finding it difficult to get on the property ladder.
This is according to Bernard Clarke, communications manager for the Council of Mortgage Lenders (CML), who said that the size of the deposit needed is a big barrier.
"On average now, that's 25 per cent of the cost of the property, which is a very significant amount of money for a first-time buyer to acquire," he highlighted.
In some cases, people will rely on relatives who can withdraw equity from their own homes, although this has been less common over recent months, Mr Clarke suggested.
Falling property values will mean that individuals are likely to stay in their homes, making equity release less favourable, he explained.
At the beginning of March, there were 1,798 mortgage deals on the market requiring deposits of between zero per cent and 40 per cent, Moneyfacts reveals.
This represents more than six per cent more availability than at the beginning of February and 68 per cent more than this time last year.
February figures from the CML show that lending increased by six per cent compared to the previous month, with an estimated £9.2 billion of loans allocated.
Economist for the body Paul Samter commented: "As we look forward, we expect emerging signs of improvement as confidence in the economy grows and we move past the election.
"However, the need for the authorities to address fiscal deficit will inevitably slow the economy."
The market is still struggling, however, as February lending statistics are still down by six per cent when compared to the previous year.
CML forecasts suggest lending will total £150 billion for 2010 as a whole, with the latest figures so far putting this prediction on track. |
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