First home buyers are continuing to lose out to investors with the number of loans to property debutantes crashing to a record low.

Loans to first home buyers as a proportion of total new home loans fell 4 per cent in the year to April – after plunging 12.3 per cent that month – equalling the record low set last November.

First home buyers are losing out to investors. Credit:Ken Irwin

This compared with loans to investors surging 29.9 per cent in the same 12 month period, after a 2.3 per cent rise in April.

St George senior economist Hans Kunnen attributed the lack of first home buyers to state governments scrapping first home buyer grants for existing dwellings, and a ''solid increase '' in house prices during the past year.