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Why are first-time buyers not flocking back to the property market?

With UK homes apparently now three times more affordable for first-time buyers than prior to the credit crunch, is it right to ask the question why first-time buyers are not flocking back to the UK property market?

The substantial reduction across the UK property market has prompted suggestions that first-time buyers are looking towards properly again although the figures so far do not support this theory. One possible reason is the ever complicated issue of acquiring a mortgage in the UK, with more and more mortgage providers demanding larger and larger deposits. Forget the headlines in the short term regarding substantial headline mortgage rate reductions the bottom line is that banks want more security for their money which means higher deposits for first-time buyers.

Even though the headlines would suggest that first-time buyers are beginning to "stick a toe into the water" this has had no impact whatsoever on property prices. There is a feeling that many first-time buyers are concerned about the short term security of their employment positions and maybe holding back on significant financial investments such as property and mortgages. This is very understandable in the current environment although once the UK economy starts to recover we should see a significant turn in sentiment in the first-time buyer market.

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