While the climb onto the property ladder has gotten much harder due to tighter lending practices and higher property pricing there have been many government schemes to assist first time buyers into a home. The Help to Buy programme allowed people to buy a home with a low level deposit. Yet, the first time buyers are still a rare and much needed demographic in the housing market.

According to a report by Halifax, young people are not saving for a home deposit like they used to do. The Generation Rent report revealed that those aged 20 to 45 saving for a home deposit has fallen by 6% to 43%. The data could be showing that most people are giving up on the idea of owning their home according to the report.

The report showed the barriers for buying a home were the size of the deposit needed, high property prices, and low income. Those that do not own their own home noted they were willing to save for an average of five years for a deposit. Those already on the property ladder noted they would be willing to wait three years and seven months to save for a deposit.

Of the 20 to 45 year olds surveyed, of which there were 40,000, 79% felt that banks do not want to lend to first time buyers.

Craig McKinlay, Halifax mortgages director, said, “While there has been an increase in first-time buyers in the last 12 months, at the same time there is also a growing group of young people who believe they won't be able to get a mortgage.

“The difference between the reality and their perception needs to be addressed urgently if we are to prevent people from giving up on getting on the housing ladder.”

Roger Harding, housing and homelessness charity Shelter’s director of communications, policy and campaigns, said, “For the first time in decades, young people today are facing worse prospects than their parents because successive governments have ducked the question of how to fix the housing shortage.

“House prices have now shot up to ten times the average wage, leaving 'generation rent' left with two alternatives - either carry on living with mum and dad, or pay out dead money to landlords.

“And with prices still on the rise, it's no surprise so many young people feel their dreams of owning a home are slipping out of reach. The only way to give generation rent any real hope of a home of their own is for politicians to deliver a big and bold plan that will finally deliver the affordable homes we desperately need.”

A recent report from Rightmove, the online property lister, noted that there had been an increase in the number of hopeful first time buyers interested in property. This could be an indication that first time buyers will soon be returning to the market.

Mortgage lending and remortgage lending is expected to increase due to several factors impacting interest in the housing market. Should this occur, would be borrowers are warned that the competitive lending environment will be changing and interest rates offered by lenders should be expected to rise.