The number of people buying a property for the first time dropped 0.5% in 2015 to 310,000 when compared with the previous 12 months.
And mortgage lender Halifax says more than a quarter of first-time buyers are now taking out a 35-year home loan.
The decline in the number of people getting on the property ladder is the first since 2011.
It is being blamed on the lack of supply of homes and the increase in the size of deposit needed.
Halifax reports that average deposit for first-time buyers rose 13% from £29,094 to £32,927 in 2015, although that figure is £91,409 for properties in London.
Since the property market reached its last peak in 2007, the average first-time buyer deposit has risen by 88% from £17,499. At that point, loans of more than 100% of a property’s value were available from some lenders.
Halifax says it has seen a marked increase in the proportion of loans arranged over a period exceeding the traditional 25-year term.
In 2007, 16% of first-time buyers took their loans out over 35 years, but by 2015 that had risen to 26%. The share of mortgages taken out over 20-25 years fell from 48% to 30% over the same period.
Craig McKinlay, mortgages director at Halifax, says: “Although the average price of the typical first-time buyer home has grown by 10% to £190,180 in the past year, the number of buyers taking that first step onto the housing ladder has been supported by record low mortgage rates, rising employment and real pay growth.”
For more information, click on the linke below: