First-time buyers 'face struggle'

Still out of reach for many would-be buyers

People seeking to buy their first property are still facing an uphill battle, according to a survey.

Nine out of 10 first-time buyers fail to buy the property they want, the Bradford & Bingley study said.

Despite recent signs that the UK housing market is cooling, 43% said that they feel prices are still rising faster than they can save.

However, the survey also found that a third of recent buyers had failed to negotiate a lower sale price.

Hurdle

The boom in UK house prices over the past few years has left many would-be property owners unable to afford their own home.

[First-time buyers] need to realise that without a property to sell they are in a strong bargaining position Duncan Pownall, Bradford & Bingley

In January, the Halifax bank said its research indicated that first-time buyers could not afford to buy a home in 92% of UK towns. The bank also noted that first-time buyer numbers were at their lowest level since 1981.

In recent months, property surveys from mortgage lenders such as the Halifax and Nationwide have indicated that the growth in house prices is slowing.

But the Bradford & Bingley report said that first-time buyers are facing a massive financial hurdle before they can secure their first home.

The study found that 44% are still paying off debts, with 31% saying they have do not have enough savings and are struggling to raise a deposit while paying rent.

Nearly a quarter of would-be buyers have not saved anything for the deposit, the survey said.

However, the survey also found that many first-time buyers are not helping themselves because they are failing to negotiate a lower price.

Nearly a third of recent buyers said they had not tried to negotiate.

"The fact that a third aren't negotiating anything off the asking price doesn't help their situation," said Duncan Pownall, mortgage development manager for Bradford & Bingley.

"They need to realise that without a property to sell they are in a strong bargaining position... and should use this to their advantage. It could save them thousands of pounds."