First-time buyers drop out

Dramatic new evidence today highlights the plight of London's first-time buyers.

The number of young people getting a foothold on the capital's property ladder has slumped by nearly 30 per cent in a decade.

Figures show 48,000 bought their first home last year - down from 67,000 in 1993 - as spiralling housing costs have pr iced thousands out of t he market.

The findings from the Council of Mortgage Lenders will heighten concerns that low-paid workers in London and the South-East are being forced to live in rented accommodation or endure long commutes.

"The only way I'll get on the property ladder is if I win the Lottery," said one would-be buyer.

In the past 10 years the average price of a first home has surged from £58,000 to £165,000. But over the same period average-income has only gone up from £20,000 to £40,180.

First-time buyers represented only 29 per cent of all buyers last year, compared to 38 per cent in 2002 and 50 per cent in 2001.

The barriers facing first-time buyers could threaten the stability of the entire market, experts warn. The shortage of such buyers means people higher up the housing chain were finding it more difficult to sell properties which could "slow the market quite dramatically".