The tough mortgage environment in 2011 will impact heavily on first-time buyers, as the large deposits required by lenders and difficulties obtaining finance will continue to keep many from getting a foot on the bottom rung of the ladder.

According to the CML, with funding in short supply, the availability of mortgages for first-time buyers will remain limited, with lenders likely to continue to have only a "modest appetite" for advancing mortgages at higher loan-to-value ratios.

"Mortgage lending will continue to be the preserve of those with large deposits, perfect credit and steady jobs," said Andrew Montlake.

Melanie Bien director of broker Private Finance, told MSN Money: that it will be difficult for first-time buyers to get on the housing ladder unless they have saved a 10% deposit or have help from the 'Bank of Mum and Dad'. But she also warns that, with first-time buyers in short supply, the entire property market is on shaky ground, as these buyers at the bottom are the lifeblood of the housing market.

To read the full report visit http://money.uk.msn.com/