MORE than a third of first-time buyers say they have given up all hope of buying a house in the next year, a new report claims.

But a leading York estate agent has countered the claims, saying there are still plenty of opportunities for young couples to get on the housing ladder.

The Housebuyers Survey, from Yorkshire Bank, said an alarming split in house-hunting attitudes among first-time buyers was threatening to destabilise the housing market.

Surveying about 2,000 adults, it reveals that 37 per cent do not think they will buy in the next 12 months, 41 per cent are fuelling house price rises by signing up for properties they do not like, while 40 per cent admit they are torn between saving for a deposit and going for a 100 per cent mortgage.

But Hazel Beattie, of Quantum estate agents, in Walmgate, said the survey results did not accord with the business they were seeing, with York continuing to have a buoyant first-time buyer market.

Gary Lumby, head of personal financial services at Yorkshire Bank, said: "First-time buyers clearly need help - especially as their predicament is endangering the property market as a whole - but we are firm believers in responsible lending.

"Increasing numbers of other lenders out there are now offering first-time buyers four or even five times their salary, which is highly risky. One hundred per cent mortgages are not an ideal solution either - if you have one of these mortgages and the property market begins to dip you could be left in negative equity."

Ms Beattie said: "It is true that property prices increases are making saving for a deposit less practical. But York's first time buyers have still got the confidence and are still going for it 100 per cent.

"We are still representing a number of first-time buyers looking for properties, and there has been no despondency among the people coming through our doors."

One in four people look set to still be paying off their mortgage during retirement. The rising age of first-time buyers, combined with high property prices making people more likely to start a new mortgage term when they move house, suggests increasing numbers of people will still be facing mortgage repayments when they give up work.

Insurance giant Prudential said 42 per cent of first-time buyers were now over 35, while 21 per cent were over 45.

Updated: 10:34 Thursday, April 22, 2004