Uk Lowest since 1980

LONDON (Thomson Financial) - The number of first-time buyers in the UK housing market fell to the lowest level this year since 1980, the country's biggest mortgage lender said.

In its annual First Time Buyer Review, Halifax said an estimated 300,000 first time buyers entered the housing market this year, down 5 pct from last year, and down substantially from 532,000 five years ago.

The review also found that average property prices were unaffordable for new buyers in 96 pct of towns this year, unchanged from last year. They were unaffordable in all the towns in South West England, East Anglia, East Midlands, Yorkshire & the Humber, and Northern Ireland.

This comes as the average house price paid by first-time buyers jumped by 15 pct year-on-year to 175,093 stg from 151,720, and compared with 95,994 stg in 2002. The increases were led by Northern Ireland, London and South East England.

The average house price for new buyers is more than 120,000 stg in all regions of the UK except North England, where it is 116,223 stg.

Other findings showed that for the first time, flats are now the most common purchase alongside terraces for first-time buyers this year.

Terraces are historically the most popular choice, and made up 37 pct of sales to first-time buyers, down 7 pct from last year. However, sales of flats and maisonettes to first-time buyers rose 13 pct, raising its proportion of total sales to new buyers to 37 pct.

The review also found that the average deposit paid by new buyers has risen to 34,381 stg, 20 pct higher than average full-time earnings. This is an increase from 28,169 stg last year, which was 19 pct above average full-time earnings.

First-time buyers accounted for 29 pct of all new mortgages in the UK this year, whereas five years ago, they accounted for 34 pct.

chinny.li@thomson.com

cml/ejp

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