The survey of 2,000 respondents, carried out by independent researcher Toluna, showed that the majority of people (42%) viewed the onerous task of raising a deposit as the biggest barrier to first time buyers, closely followed by difficulty in securing a mortgage (38%). Interestingly, only 15% believed the purchase price still remained a major barrier, as price falls over the last eighteen months have vastly increased the affordability of most purchasers.
Despite developers increasingly offering incentives such as deposit paid, shared equity schemes and stamp duty/legal fees paid, only 5% of those polled believed that housebuilders should do more to help first time buyers. While over 30% felt that responsibility for helping first time buyers lay with the Government, a surprising 44% thought first time buyers should not receive any help at all from Government, developers, charities, councils or family.
John Hitchcox, chief executive of Green Shoots, said: "Almost 50% of the respondents thought that first time buyers are key to the market recovery. Crucially, this research confirms that they are at last seeing value in the property market and largely believe that the biggest price falls have already occurred and the market has bottomed.
"The market decline over the last year and a half has given many first time buyers a good opportunity to save a deposit, and lenders have released a flurry of new products aimed at this sector over the last few weeks with LTVs of up to 90%. With interest rates still at their lowest ever level, now is the ideal time to get on the property ladder."
