First-time buyers could benefit from house price falls

Posted: 03 Jul 2008 13:15:01 GMT

As falling house prices continue to dent consumer confidence, first-time buyers (FTBs) are reminded that they are likely to be beneficiaries of the current situation.

As falling house prices continue to dent consumer confidence, first-time buyers (FTBs) are reminded that they are likely to be beneficiaries of the current situation.

Firstrung who provide financial and buying advice for those searching for property has said that price corrections will mean that cash-strapped FTBs will be able to get on the housing ladder.

Paul Holmes, operations director of Firstrung, said: "As the market corrects, the future is very bright for first time buyers."

He continued: "The major beneficiaries of a correction in house prices are first-time buyers and that has to be a good thing."

Mr Holmes said that for those FTBs that have a decent deposit, the decision to buy becomes a "no-brainer", especially if the person's mortgage repayments are equivalent to their rent.

Good news for existing homeowners comes from GE Money Home Lending, with their latest research showing that a "typical" homeowner who bought in 2004 has an average "equity cushion" of 48 per cent.

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