29% said they were refused because their income was too low and 24% were turned down because of poor credit scores. The research indicated that around 2.5 million sales have been lost since the market downturn.
The study also indicated that several major barriers still remain for first time buyers. 12% of adults interviewed cited job insecurity as one reason, while 63% of people in private rented accommodation said they could not afford a deposit.
Grenville Turner, chief executive of Countrywide, said:
"These findings reaffirm what we see on a daily basis. The shortage of appropriate housing at the right price coupled with lending issues is creating a perfect storm for the housing market. The issue of deposit affordability remains the major barrier to purchasing a home for renters and we have been calling for some time now for meaningful mortgage targets, to strong-arm higher loan-to-value lending.
"More appropriate credit is urgently required in the housing market, but lending volumes for house purchases are only one third of what they were five years ago. Banks need to be encouraged to lend at more favourable rates, with the introduction of higher loan to value mortgage products, to enable prospective buyers with a deposit of 10% or even 5% to get on the property ladder.
Restoration of the mortgage market would help unlock the current stagnated property chain with the availability of more accessible mortgages, so that prospective property purchasers, both first-time buyers and down-sizers, can buy their home at a price they can afford and in a location they want to live in."
