As Market Tightens, First Time Home Buyers In U.K. Now Required To Have 15 Percent Deposit

London, England (AHN) - The housing market in U.K. continues to tighten as first time home buyers are required a 15 percent deposit, while real estate agents can sell only an average of one house a week.

The Council of Mortgage Lenders raised in July the required deposit to 15 percent from 13 percent. With an average cost of $182,246 (129,400 euro) for a new house, first-time home purchasers must deposit $27,323 (19,400 euro) and borrow $154,924 (110,000 euro) to build their nest.

Because of the tightening mortgage lending market in Britain, first-time home buyers borrowed, on the average, 3.24 times their income. Michael Coogan, director general of CML, admitted to the U.K. Telegraph, "Tighter lending criteria have clearly made it more difficult for first-time buyers to enter the market."

Coogan added the stamp duty and shared equity measures announced by the British government last week will ease the burden of acquiring a home for first timers.

Number of mortgages secured for house purchases remained at 47,400 in July.

Meanwhile, the August report of the Royal Institution of Chartered Surveyors released Tuesday said home sales dipped to a 30-year low. Surveyors reported an average of 12.7 sales for the past three months, while some areas had only one house sale a week. House prices and inquiries from buyers were also on the low side.