Bellway says it's tough for first-timers

Builder Bellway today warned that first-time buyers are struggling to get on the housing ladder as mortgage lenders turn away all but the richest borrowers.

Lenders have increased mortgage costs and told many first-time buyers they must raise 25% deposits. In London, that means £75,000 on an average £300,000 home.

Bellway chairman Howard Dane said: "The current housing market can be described as tough, caused primarily by a change in consumer confidence and the continuing credit crisis.

"Particularly hard-hit are first-time buyers who are having to find larger deposits in order to make their first step on to the housing ladder."

Bellway's first-half profits fell 4% to £96.9 million although the number of homes sold dropped by just 12 to 3252.