Some buyers wait so long they find they can no longer afford a deposit

As house price uncertainty continues, many first-time buyers are putting off buying for years, according to a report.

A survey of 400 first-time buyers by the Skipton Building Society found that a quarter had delayed buying for more than a year.

Many said their dithering was due to uncertainty over property prices.

Two-thirds of those questioned said they were worried that interest rates would rise, leaving them unable to meet mortgage repayments.

And one in five waited so long they could no longer afford a deposit as house prices had risen while they were considering buying.

Staying at home

About half of those questioned said they had moved into rented accommodation while they delayed a decision on whether to buy, shelling out an average �5,200 on rent.

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The findings reflect industry figures which this week revealed first-time buyers now account for just 31% of loans for home purchases.

In the 1990s that was closer to 50%.

Economists say new buyers are being deterred by the large multiples of their salary they are forced to borrow.

If the trend persists it could force young people to stay longer in their parents home and buy property later in life.