First-time buyers "in better position"

Posted: 04 Jun 2008 13:15:54 GMT

As house prices fall, the UK population needs to recognise that it is a buyer's market, an industry expert has said.

As house prices fall, the UK population needs to recognise that it is a buyer's market, an industry expert has said.

Firstrung, a company that advises first-time buyers, has suggested would-be homeowners should take their time, as property is likely to be on the market for longer.

Paul Holmes, CEO of Firstrung, said: "First-time buyers may be in a better position than for a long time to negotiate the price down."

The vendor as opposed to the buyer is, according to Mr Holmes, the one who is "motivated" by depreciation in the value of their property.

Mr Holmes, does concede, however, that securing a mortgage deal has become harder in the current economic climate.

First-time buyers will need to raise at least an eight per cent deposit to "enjoy a decent interest rate", although this does leave less competition amongst buyers.

According to a recent Land Registry report, house sales between September and December 2007 were down to 90,880 per month from 117,301 for the same period in 2006.

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