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Abbey: Two thirds delay home buys due to economy

First time buyers are turning away from the mortgage market, turned away by unfavourable economic conditions.

According to the home loans provider, two-thirds of people looking to get on the property ladder have delayed their move due to fears over the credit crunch and high house prices.

Abbey said that a larger figure, almost three quarters of first time buyers, also say that the apparently slowing economy has "dampened their enthusiasm" for their property search.

Nici Audhlam-Gardiner, director of mortgages at Abbey, commented: "We know how difficult it is for first time buyers to get on the property ladder and this is exacerbated by current market uncertainty.

"As has always been the case, we recommend that homebuyers give serious thought to affordability when purchasing a home and not overstretch themselves."

Regionally, first time buyers in Wales and south-west England have been hit the hardest by the changing conditions.

Abbey said that 87 per cent of those planning to buy at the beginning of the year have now put their property dreams on hold.

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