First-time buyers "stand to gain" from falling house prices

Posted: 30 May 2008 13:13:35 GMT

First-time buyers are set to gain from the dip in house prices, a price comparison site has said.

First-time buyers are set to gain from the dip in house prices, a price comparison site has said.

Moneysupermarket.com were commenting yesterday (May 29th) on the Nationwide's house price survey, which showed a 2.5 per cent drop in the value of property in May.

Louise Cuming, head of mortgages at moneysupermarket.com, said: "It is the first-time buyer who stands to gain. Our recent research found 11 per cent of people who were planning to buy this year had subsequently decided against it due to affordability issues."

Ms Cuming has suggested that it is those would-be homeowners that could not afford a mortgage who may now be encouraged to "re-enter the market".

The Nationwide Index released yesterday showed that, although house prices have fallen, they are still five per cent higher than two years ago.

According to the building society, those seeking mortgages "are better placed to weather the storm than in the 1990s".

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