The latest figures show that the percentage of home buyers who are first-time buyers has fallen to its lowest level in 2009.
The figures, from the National Association of Estate Agents (NAEA) showed that 19 per cent of home buyers were first-time buyers in November. The numbers represented a three per cent fall on October?s figure, and the lowest proportion for 12 months.
In May the figure was as high as 45 per cent, despite the banking crisis. It appears that lack of mortgage availability and the continuing demand for high deposits, coupled with the ongoing recession, have caused first-time buyers to think of alternatives.
Chancellor Alistair Darling confirmed in his pre-budget report that stamp duty would return for properties sold for more than ?125,000 after a year of starting at sales at ?175,000.
The NAEA said that the stamp duty change would have a ?profound impact? on the number of first-time buyers able to get on the property ladder.
Gary Smith, president of the association, told the BBC: ?Any tax holidays result in a distortion in the market and in the case of stamp duty, needed to be carefully managed and phased out, rather than falling off a cliff.”
He continued: “Unfortunately, as first-time buyers often form the foundation of selling chains, there could be repercussion throughout the sector.”
Meanwhile, the Trends in Lending report from the Bank of England said that lenders in the UK expected a ?muted recovery? in mortgage lending in 2010.
Other borrowing ? such as loans and credit cards ? would be even less popular than mortgages in the year to come, according to the report.
