Since the property market peaked back in 2007 property prices in the UK have plunged, sending many homeowners spiralling into negative equity and wiping tens of thousands of pounds off the price of properties.

However, over the past few months there has been a slight revival in property prices, partly fuelled by increased demand and low supply, and whilst property prices are not back to the level that they were at their peak they are now back to the level that they were at around twelve months ago, according to reports.

The news that property prices were falling probably came as good news to many people that had been waiting in the wings to get onto the property ladder, but were unable to do so due to extortionate property prices in the UK.

However, despite the fall in house prices many first time buyers still cannot achieve their dream of homeownership because property prices are still too high. One industry official said that many first time buyers are not being approved for mortgage finance because property prices are still too high.

With the average property price at £160,000 the industry expert said that a couple would need to be earning £60,000 between them or a single person would have to be earning £50,000 to be able to get a mortgage.

He stated: “The majority of first-time buyers I come across, if it’s a couple, have said that they’re earning somewhere in the region of £45,000 between them. So, property is still expensive.”

Another problem that many first time buyers continue to have is raising an adequate deposit to be able to get an affordable mortgage, as some lenders are charging double the interest rate to those that have only a 10 percent deposit compared to those with larger deposits such as 40 percent.

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