Property experts predict slight increase in first-time buyers

STV
For sale: First-time buyers could find a lack of suitable properties.© STV

The proportion of first-time buyers is set to rise slightly this year, but they could face a narrower choice of properties due to a lack of first-time sellers, a study has suggested.

Rightmove said the proportion of buyers who intend to purchase their first home over the next year has edged up slightly to 24.3%, but remains well below the 40% "healthy" historic level.

In Scotland, the figure is even lower, with just 21.8% of buyers expected to be doing so for the first time.

However, first-time buyers could struggle to find what they are looking for with flats and terraced properties in short supply, the property search website said.

The number of terraces and flats coming to market in the final quarter of 2011 dropped by 31% and 28% respectively, compared with the previous quarter.

That could be caused by potential first-time sellers holding onto their properties for longer as falling prices have led to a lack of equity.

Those who want to get on the property ladder will face a further hurdle this spring when the current stamp duty holiday for first-time buyers ends.

Miles Shipside, director at Rightmove, said: "The main issues of affordability and mortgage availability that have blighted first-time buyers over the last few years remain.

"Our research also provides evidence of an emerging new home-ownership challenge in the form of a lack of available properties that would typically be brought to market by first-time sellers."