There were an estimated 320,000 first-time buyers in the UK in 2005, the lowest annual total since 1980, according to figures released yesterday by the Halifax.

The number of FTBs last year was estimated to be 10% lower than in 2004 (358,000) and 40% lower than in 2002 (532,000).

However, first-time buyer numbers did start to pick-up slightly in the second half of 2005. Halifax said they expect this trend to continue during 2006 as house prices rise at a slower pace than earnings, therefore making it a little easier for FTBs to enter the market.

Eighty five percent of towns unaffordable for first-time buyers

Halifax research found that a typical FTB was unable to afford the average house in 85% of towns in the UK in 2005 (439 out of 514), compared to 78% of towns (402 out of 514) in 2002. 97% of areas were unaffordable in London and also the South West in 2005. The most affordable towns were in Yorkshire and the Humber (24%) and the North of England (23%).

Halifax research also found that the typical FTB was unable to afford a semi-detached property in 87% of the towns surveyed in 2005 (424 out of 486), compared to 41% of towns (199 out of 486) in 2002. Terraced properties were unaffordable for FTBs in 50% of towns in 2005 on this basis compared to 28% of towns in 2002.

The average FTB deposit now stands at £23,967

First-time buyers take, on average, five years to save enough money to get onto the property ladder. This assumes that FTBs save 15% of average earnings per year.

Five years ago, the typical FTB took three years to save enough money to get the then average deposit of £9,894. Ten years ago it took the typical FTB two years to save their £5,479 average deposit.

• FTBs put down an average deposit of £23,967 in 2005, equivalent to 17% of the value of the property.
• FTBs in Greater London put down the largest deposit £43,988 (20% of the value of the property)
• FTBs in Northern Ireland put down the smallest deposit of £12,946 (13%).
• The average deposit is proportionately much higher than ten years ago, when the average FTB put down £5,479 or 12% of the purchase price.

The average FTB is 33 years old

The average age of a FTB has risen in recent years and now stands at 33. The proportion of those aged 25 and under buying their first home remains low, at just 15% of FTB home purchases. In 1995, 24% of FTBs were younger than 25.