A national real estate company says first-time buyers are being increasingly shut out of the market as a result of the Reserve Bank's new home loan lending rules.
First National Real Estate says speculators have taken advantage of a gap left by the departure of the first home buyers and are flooding the market.
The central bank's new loan-to-value ratio restrictions took effect on October 1, with the intention of protecting the financial system in case of a shock to the economy.
Excluding exemptions, the bank says lending to those with a deposit of less than 20 per cent fell to 12 per cent of total new lending in October compared with 26% in September.
We'll have more on home ownership, and just how feasible it is for first-time buyers, next week on The Wireless.