The housing market is still "stuck in the doldrums" because there are not enough first-time buyers able to afford houses and care homes, according to surveyors.
First-time buyers are needed to fuel the housing market in order to increase the amount of affordable
retirement properties for sale .
However, a survey by the Royal Institution of Chartered Surveyors (RICS) showed activity levels dropped in June with first-time buyer interest and new instructions at its lowest level for more than 18 months.
In June, 22% more surveyors reported drops rather than increases in value - the worst figure since October - whereas this figure was only 17% in May.
And even though the volume of transactions is predicted to stay relatively similar, expectations for house prices during the coming year yet again dropped considerably.
It is thought the poor figures are due to the ending of the government's stamp duty holiday for first time buyers in March, despite the government-supported New Buy project to encourage 95% mortgages to be made available again.
Chief economist at RICS, Simon Rubinsohn, said that activity levels are not likely to improve measurably unless lenders ask for smaller deposits from first-time home buyers and borrowers with small deposits are given lower interest rates.
He said: "Although there is some positivity that the amount of sales going through is going to see an increase, it is unlikely that we will see any real movement until purchasing a property is more affordable and accessible for the likes of first-time buyers."
