First-time buyers now in their 30s

First-time buyers are getting older with just a third in their 20s.

In 2007 as many as 50 per cent of first-time buyers were under 30-years-of-age this has now fallen to just 34.5 per cent, according to research from mform.co.uk.

The principal cause of the change is the tightening of lending criteria by mortgage providers; meaning would-be buyers are forced to save for longer before making a purchase.

The extent of the squeeze as seen by mform.co.uk is demonstrated by changes in the average loan-to-values (LTV) and average income multiples.

In 2007, lenders allowed average LTVs of 85 per cent, compared with 77 per cent this year.

Furthermore, income multiples have fallen from 3.44 times income in 2007 to just over three times now - as a result, first-time buyers now need average incomes of £41,600, compared with £34,000, last year despite recent house price falls.

Nationwide is now reporting the sharpest falls in average house prices since 1991.

"The end of the housing market boom with house prices dropping ought to be good news for first-time buyers who can finally be in a position to afford the home that was out of reach," explained Francis Ghiloni, mform marketing and business development director.

"However, with the mortgage market contracting lenders are getting tougher on how much they will lend and what level of deposit they’ll demand which means first-time buyers are yet to see much benefit from the house price slide."

Average first-time buyer property bought through mform this year cost £170,540 compared with £149,800 last year with average loans so far in 2008 around £127,000 compared with £117,000 in 2007.