Sharp fall in number seeking first home

Only 22 per cent of potential buyers were looking to purchase their first home in July, down from 31 per cent during the same month of 2009, according to research carried out for the property website Rightmove. co.uk and published today.

The group warned that the proportion of first-time buyers was half the level needed for a healthy housing market.

Miles Shipside, director of Rightmove, said: "With the number of prospective buyers at the bottom of the chain being half of normal levels, the question sellers further up the chain will be asking is 'who will be at the bottom of my chain?"'

The availability of mortgages continued to be people's main concern about buying a home, with 55 per cent of first-time buyers saying mortgage-related issues, such as raising a deposit, were among their biggest worries.

But people were less concerned about house price falls, with 73 per cent saying they thought house prices would be around the same or higher in 12 months time.

Only 20 per cent of first-time buyers thought house prices were set to fall, although this was up from 13 per cent three months ago.

Only six per cent of potential buyers were worried about job security.

The proportion of potential buyers who were hoping to buy their first home was highest in London at 39 per cent, while it was lowest in Wales at 17 per cent.

Researchers for Rightmove questioned 22,010 people during July.