First-time buyers are most likely to buy a flat in a city, the bank said

Around 30,000 people purchased their first home in 2007 - the lowest number since 1988, the Bank of Scotland said.

Its research found the rising cost of homes means first-time buyers are being priced out of the market in almost all of Scotland's towns and cities.

The bank said the average price paid by first-time buyers has more than doubled in the past five years.

Those getting on the property ladder spent an average of �123,213 in 2007, with nearly two-thirds opting for a flat.

An increasing number of people are buying their first property in a city, the research revealed.

A more subdued housing market over the next few years is a positive step for potential new entrants Martin Ellis Bank of Scotland

Edinburgh and Helensburgh are Scotland's least affordable areas.

In the capital the average property price is 8.2 times the average income of a typical first-time buyer household, the review found.

Lerwick is the most affordable area to set up home, followed by Cumnock in Ayrshire.

Martin Ellis, chief economist at Bank of Scotland, said: "The sharp rise in Scottish house prices over the past five years has prevented many potential first-time buyers from climbing onto the property ladder.

"When they do enter the market first-time buyers are likely to buy a flat in the city as they opt for convenience over size.

"There is no quick fix to the first-time buyer problem.

"A more subdued housing market over the next few years is a positive step for potential new entrants."

The average deposit put down by a first-time buyer was �25,951 - almost the average annual wage.

Five years ago buyers put down �7,683, which was just over a third of the average earnings.