First-time buyers are returning to the property market due to a drop in property prices, according to research by online credit information provider Equifax.
A survey of Equifax customers in October found 70% of the first-time buyers who responded felt more confident about stepping onto the property ladder.
The introduction of a number of new products for the first-time buyer segment is likely to have had an effect, says Equifax, with 75% saying the lack of mortgage products meant they had to put their plans on hold in the last year.
However, the availability of a reasonable deposit still appeared to be a challenge for a number of first-time buyers, with only 12% having a deposit of more than 20% of the property value and over a quarter (26%) having just a 5-10% deposit.
However, 35% say they have less than 5% deposit, which is likely to continue to make it difficult for them to get a mortgage.
Neil Munroe, external affairs director at Equifax, says: "Clearly the challenging financial conditions are still making it hard for first time buyers to get on the property ladder. But what our latest research, conducted in early October, shows is that there is a new level of confidence that probably hasn't existed for the last 12 months or so."
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