According to a recent report a substantial number of new-build homes have been hit by price falls and the sector is struggling overall. Halifax found that a generation of young people have deemed owning their first home an unrealistic prospect, with many giving up and resorting to rental schemes instead.

The Telegraph has reported that almost five million people are on housing waiting lists, reflecting the stark shortage of affordable housing. Although new builds offer a relief for desperate first-time buyers looking to acquire a home, people are being advised to think carefully about the deals, especially where 95 per cent mortgages are offered.

Lack of finance remains the primary barrier to property purchase, even with mortgage lenders under growing pressure to ease the lending criteria.

According to This is Money, large home construction companies, notably Barratt and Taylor Wimpey are joining with lenders to provide finance to first-time buyers. They provide finance with rates of often 95 per cent so only a small deposit is required. 

With an ever growing number of young people unable to step onto the property ladder due to high house prices and lack of available funding, many are turning to new-builds.

But buyers are being advised to consider these new builds only if they were going to buy the property anyway, and not as a last resort.

Mortgage expert David Hollingworth told ThisIsMoney.vco.uk: “For some, this type of deal could provide a lifeline in a tough mortgage market.

“But first-time buyers need to be cautious. It is a buyers’ market. There are bargains to be had, so you want to get the best deal you can. Going for a new build just because the finance is available could be a mistake.”

The warning highlights the need for young people looking to purchase their first home to consider these new build options more carefully.