First-time buyers ‘are poor savers’

First-time buyers are could face affordability difficulties because they dip into their savings for unrelated purchases, one financial services provider has said.

A new survey by Abbey indicates that 11.2 million first-time buyers dip into their savings, with more than 800,000 respondents doing so every week.

Ricky Okey, managing director of Abbey for Intermediaries, said: "As surprising as the research is, it does go a long way to explaining why so many people are finding it hard to get on to the property ladder."

The study coincides with Abbey’s recent launch of a 100 per cent mortgage that requires no deposit.

Meanwhile, Professor Donald MacRae, strategy and finance director and chief economist at Lloyds TSB Scotland, recently wrote in Scotland on Sunday that more new-builds are needed to tackle affordability issues facing people looking to make a first investment in the property market.