FTB figures plummet, says bank

The number of people buying their first home has hit a low not seen for almost two decades, according to Halifax.

In its annual first-time buyer (FTB) review, the bank estimated that around 300,000 FTBs entered the housing market this year - the lowest number since 1980 and 44 per cent fewer than five years ago.

The average house price in the UK grew to more than £175,000, representing an increase of 82 per cent since 2002. In 466 out of 483 towns analysed, the average house price is too expensive for those looking to get a foot on the property ladder.

The most expensive town in which to get a mortgage on a first home is Henley on Thames, while the cheapest is Bootle.

Martin Ellis, Halifax's chief economist, said that more FTBs are likely to be in their thirties buying flats rather than houses.

However, he added: "A more subdued housing market over the next few years is a positive step for potential new entrants. Lower than average earnings house price growth together with more government initiatives may, in time, address the issue."

The Royal Institution of Chartered Surveyors reacted to the report by claiming the market should "gradually thaw" next year.