Greg Fuzesi, Nationwide's Senior Economist, comments: "According to research from the Council of Mortgage Lenders, 38% of house purchase loans were taken out by first-time buyers in the final quarter of 2005. However, only a small proportion of those who are classified as first-time buyers actually manage to purchase a property without assistance from relatives".
"Those without access to such assistance have significant difficulties in saving up for required deposits out of their current income. This keeps a growing proportion of potential first-time buyers out of the market. Therefore, the conclusion that first-time buyer affordability is stretched still holds, and weakens one of the big drivers of house price increases. This casts doubt on the likelihood of a renewed pickup".
