First-time buyer levels drop to 23%

The findings showed that the proportion of first-time buyers expecting to enter the market has fallen from 25.5% to 22.8%.

Rightmove.co.uk said that the figure was around half the level typical of a healthy housing market.

Raising a deposit was cited by 45% of first-time buyers as their biggest concern of getting onto the property ladder. A further 10% were worried about being unable to meet monthly mortgage payments.

In addition, 23% said that they struggled to find a property they liked and 10% said worries about their finances, existing debts and job security prevented them from buying a home.

However, only 7% were put off buying by concerns over recent house price falls, with two in five people expecting the price of property to remain broadly unchanged by the end of the year.

Miles Shipside, director of Rightmove, said: "The level of first-time buyers dropping below one in four of all prospective buyers is a big concern for the property market.

"The desirable level of first-time buyers for a healthy market is typically around 40% of all buyers, almost double the current level, as they perform a vital function in completing chains and aiding fluidity throughout the housing ladder."

He added: "These findings are likely to heighten government concerns about the scarcity of first-time buyers and it is imperative for the long-term health of the market that a solution to this issue is found."

The plight of first-time buyers will be discussed at the government's emergency summit, which is being held by Housing Minister Grant Shapps to find a solution to the first-time buyer crisis.