First-time buyers losing confidence, says Abbey

29 March 2005
Research by Abbey suggests that one in three potential first-time buyers are keen to get buying this year - but they're losing confidence in their ability to do so.

Abbey's latest quarterly first-time buyers' report reveals that the number of people feeling confident about being able to buy their first home this year has dropped significantly, from 18 per cent three months ago to a current low of five per cent.

Almost forty per cent of first-time buyers also said there weren't enough properties on the market in their price range, and 29 per cent are waiting for prices to come down.

However, the chancellor's recent Budget announcement of the doubling of the stamp duty threshold to £120,000 and the prospect of a good, tailor-made first-time buyer mortgage could help the first-timers' spirits rise.

"In the lead-up to the most popular season for house buying, it's worrying that there has been such a drop in confidence," comments Barry Naisbitt, chief economist at Abbey.

"Our report shows just how tough it is to get on to the property ladder, but we hope that the recent increase in the stamp duty threshold will have a positive effect on first-time buyers' confidence and affordability over the next quarter."

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