The FirstRungNow.com research revealed that 98 per cent of aspiring FTBs believed they were living in areas where property prices had risen over the previous 12 months. 91 per cent of the 1,000 aspiring FTBs questioned admitted they wanted to buy a property, but 98 per cent said rising house prices had made it almost impossible for them to do so.
However, 63 per cent admitted that they would wait until 2008 to step onto the property ladder, leading to suggestions that the market will stabilise over the next year.
The research also indicated that over a quarter of those questioned did not believe there were any more finance options open to them than 12 months previously.
Helen Adams, director of FirstRungNow.com, said: “We all know that prices are higher than ever, and little seems to impede this, making it a very difficult time for FTBs. Not only are property prices high but increasing rates are bound to be worrying them.”
Similar research by the Council of Mortgage Lenders (CML) revealed that 85 per cent of FTBs opted for a fixed rate deal in January. Michael Coogan, director-general at the CML, said: “More people – especially FTBs – are opting for a fixed rate. Each month it seems the prospect of another rate rise is balanced on a knife-edge and so borrowers are protecting themselves and choosing the certainty of fixing repayments.”
