First time buyers 'struggling to raise deposits'

Raising sufficient funds for a deposit remains the biggest barrier to getting a foot on the housing ladder, it has been claimed.

According to a poll conducted by the Building Societies Association (BSA), prohibitively high deposits were cited as the single most difficult hurdle for aspiring homeowners by the majority of respondents.

This was followed by meeting monthly repayments, stamp duty and official costs.

Adrien Coles, director-general of the BSA, said: "It is no surprise that with the average house price being almost £220,000 (CLG figures), raising a deposit is such a barrier for first time buyers.

"Even a ten per cent deposit necessitates saving over £20,000, a sum out of reach of many potential buyers who have no existing housing equity."

News of the BSA's findings comes as separate research from the Council of Mortgage Lenders showed that the average person pays out 20.4 per cent of their income on mortgage interest repayments.