First-time buyers 'raiding savings'

Some 42 per cent of potential homebuyers are spending savings put aside for a property on other things, according to new research by Abbey Mortgages.

Nici Audhlam-Gardiner, director of Abbey, has said that it is "no mean feat" if prospective first-time buyers are blowing their cash, given that the average first-time buyer anticipates needing savings of around £23,000 in order to secure a property.

"But if you're single minded and set yourself a realistic savings target then you could find yourself making an offer on a house sooner than you think," she remarked.

According to the study, the majority of potential buyers who dipped into their savings spent the money on day-to-day living, fashion, gadgets and cars, with others admitting using the savings for a holiday or wedding.

Abbey have claimed that this trend is being caused by an uncertain market which may see house prices fall later in the year, but stressed that property is a "wise investment move".

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