Falling house prices and a revival in the mortgage market have given potential first time buyers renewed confidence, according to a new survey.
Research from Equifax found that 70% of first time buyers felt more confident about stepping onto the property ladder as a result of the drop in property prices.
Meanwhile, the introduction of a number of new products for first time buyers was also believed to have had an effect, with 75% of respondents revealing they had put their plans on hold in the last year because of the lack of mortgage products on the market.
However, raising a reasonable deposit still represents a challenge for a number of first time buyers, with only 12% having a deposit of more than 20% of the property value and over a quarter (26%) having just a 5-10% deposit.
For the 35% that said they had less than 5% deposit, the difficulties in securing a mortgage seem set to continue.
Two thirds of respondents also revealed they had found it difficult to get a competitively priced deal, with over a third (38%) blaming this on the size of their deposit.
"Clearly the challenging financial conditions are still making it hard for first time buyers to get on the property ladder," said Neil Munroe, External Affairs Director at Equifax. "But what our latest research shows is that there is a new level of confidence that probably hasn't existed for the last 12 months or so."
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