Experts are warning first time buyers that new builds are not always the answer when trying to get on the property ladder.

According to a recent report a substantial amount of of new build homes have been hit by price falls and the sector is struggling in the current economic climate. The Halifax also said that some first time buyers have given up believing they will own their own home and are looking towards rental options instead.

The Telegraph has also reported that nearly five million people are on housing waiting lists, which reflects the shortage of affordable housing. Although many new builds are offering a lot of advantageous things for first time buyers, people are being advised to consider all options carefully.

According to This is Money, large construction companies such as Taylor Wimpey and Barratt are joinging with lenders to provide finance to first time buyers. They provide finance with rates of 95 per cent only so that the deposit isn't hard to get hold of.

Buit mortgage expert David Hollingworth told This is Money: "For some, this type of deal could provide a lifeline in a tough mortgage market. But first time buyers need to be cautious. It's 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."