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Buy to Let New first-time buyer by Caroline Merrell (banking correspondent)

The Times - 27th January 2005

The head of one of britain's biggest mortgage lenders gave warning yesterday that the high level of debt amoung young adults would depress the first-time housebuyer market for at least two years.

Adam applegarth, chief executive of Northern Rock, the first of the banks to report full year profits, said that the housing markets would stagnate over the shorter term, adding: "The level of indebtedness amoung 18 to 23-year-olds makes it difficult for first-time buyers."

He also pointed out that the continuing strength of demand for property in the buy-to-let market meant that the supply of properties for first-time-buyers remained scarce.