Headlines may say that first time buyers make up 40% of sales, however, the true figure is about 20%, so says the Nationwide .
The other 20% are 'returners' or buyers entering the housing market, having spent a spell in rented accommodation .
These buyers are different from your average first-time buyer as they are older and earn more. Significantly, these buyers have access monies from past house price increases that ease them back into the market .
So how do first time buyers do this. Average earnings are £27,500 and a loan at three times that salary could support a loan of only £85,250.
The average first-time buyer property costs £130,000 plus and a first-time buyer on average earnings would need to raise a deposit of £46,000 plus to buy a home .
A loan of four times the average salary could go to £110,000, yet that would mean that the borrower still needs to raise a deposit of £22,000 to afford a first-time buy costing £131,903.
In reality, few first-time buyers overcome such lending constraints to get a foot on the property ladder, with fewer than 10% of 22-29 year olds negotiating this financial hurdle.
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