The study showed that six in ten pros-pective new buyers who are currently renting or living with their parents are planning to buy a property costing only up to £120,000, leaving them short of at least £29,000 of the real cost of the typical first-time buyer property which averages £149,470.
The research also showed that it was those in their 30s who were planning to spend the least. 71 per cent of the 30-39 age group expect to spend under £120,000 and more women (64 per cent) than men (57 per cent) hoped to buy their first home well under the national average.
Stephen Leonard, director of mortgages at Alliance & Leicester said: “While there are properties in this price range in some areas, first-time buyers should take a look at the market in the areas that they plan to buy.
“Despite a typical first-time buyer property in the UK costing £149,470, six in ten people expect to spend only up to £120,000 on their first property.
“Although they need to keep their costs low, first-time buyers should perhaps reconsider their budgets. The majority are looking for a house under £120,000 but realistically they may need to be looking closer to £150,000.”
