Buyers' market enables first-time buyers to drive a hard bargain

Posted: 07 May 2008 14:58:04 GMT

First-time buyers are forcing down property prices, it has been claimed.

First-time buyers are forcing down property prices, it has been claimed.

It seems that the group is becoming increasing influential as the credit crunch impacts on existing homeowners to make it a buyers' market.

As a result, first-time buyers have been able to drive down asking prices. Research conducted by moneyextra.com suggests the average property value now being considered by first-time buyers has fallen to £170,559, down 5.75 per cent on March levels.

"While it may be getting tougher to get a mortgage now, it would appear that those first-time buyers who are in a position to buy are driving much harder bargains with sellers," commented Robin Amlot, senior editor of Moneyextra.com.

"Housing is very definitely a buyers' market now rather than the sellers' market that existing homeowners had become used to."

However, first-time buyers are also taking on more debt than in the past in order to fulfil their property dream, the survey shows.

The average loan-to-value ratio is currently at its highest ever level - 82.89 per cent.


© Houseladder Ltd

MORE UK PROPERTY NEWS: May 2008

Prime market going strong  Posted: 13 May 2008 11:02:12 GMT
The UK's prime property market continues to perform well despite the global credit crunch.

Region strategy for east of England receives mixed response  Posted: 13 May 2008 11:01:11 GMT
The government has published its Regional Spatial Strategy (RSS) for the east of England.

Financial advisors have a role to play  Posted: 12 May 2008 11:40:56 GMT
Independent financial advisors have a role to play in helping homeowners in financial difficulties.

Rise in millionaire households  Posted: 12 May 2008 11:40:14 GMT
A new report has revealed a substantial rise in the number of UK properties sold for at least £1 million.

Tory leader to speak on countryside housing issues  Posted: 09 May 2008 13:17:53 GMT
David Cameron is to give a speech on the future of the UK countryside.

Market conditions suit some investors  Posted: 08 May 2008 10:49:39 GMT
The collapse of investment company Inside Track should not be of concern to buy-to-let property investors who look to the long-term.

Rics calls for mortgage continuity  Posted: 08 May 2008 10:49:12 GMT
The Royal Institution of Chartered Surveyors (Rics) is keen to see more continuity in the mortgage market.

Buyers' market enables first-time buyers to drive a hard bargain  Posted: 07 May 2008 14:58:04 GMT
First-time buyers are forcing down property prices, it has been claimed.

Spending plans altered as credit crunch hits consumers  Posted: 07 May 2008 14:57:15 GMT
The credit crisis is impacting on people's spending habits, it has been revealed.

Buy-to-let market affected by credit crunch  Posted: 06 May 2008 13:23:34 GMT
A rise in the demand for rented accommodation has not been accompanied by an increase in the number of buy-to-let mortgage products on the market, it has been revealed.

Gazundering issue leaves Brits in a flux  Posted: 06 May 2008 13:21:05 GMT
UK homebuyers have strong opinions when it comes to the issue of gazundering - but many of them are conflicting, it has been revealed.

Govt needs to focus on empty homes  Posted: 02 May 2008 11:02:01 GMT
The government needs to look at bringing empty homes back into use if it is to meet its housing targets.

Poll points to rate freeze  Posted: 02 May 2008 11:01:09 GMT
A new poll suggests that the Bank of England's Monetary Policy Committee (MPC) will wait until June before cutting the base rate of interest.

SLS receives CML support  Posted: 01 May 2008 12:23:58 GMT
The Bank of England's Special Liquidity Scheme (SLS) has received support from the Council of Mortgage Lender.

Lenders and intermediaries remain upbeat  Posted: 01 May 2008 12:23:24 GMT
It appears that many mortgage lenders and intermediaries remain confident about the prospects for the housing market in 2008.

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