First-time buyers "silver lining" to housing market cloud

Posted: 02 Jun 2008 13:09:39 GMT

First-time buyers could take advantage of falling house prices, which, according to independent statistics, have taken another drop.

First-time buyers could take advantage of falling house prices, which, according to independent statistics, have taken another drop.

The latest figures from the Land Registry show that house prices have fallen for the eighth month in a row, which means that the average value of a property is now £183,626.

The news comes as Howard Archer, chief european and UK economist for Global Insight has commented that interest rates could fall again, from the current five per cent held last month.

Mr Archer said: "We still believe that interest rates could eventually fall as low as four per cent in 2009, but it will be a gradual process.”

Interest rate decisions for this month will be announced by the Bank of England Monetary Policy Committee (MPC) on Thursday June 5th and a poll shows there is expected to be little or no change in the coming two months.

Karen Ward, UK economist at HSBC, said: "HSBC are not expecting any change to the interest rate in June our July."

Louise Cuming, head of mortgages at moneysupermarket.com, commenting on falling house prices, said: "With every cloud comes a silver lining for some and in this case, it is the first-time buyer who stands to gain."


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