House price adjustments 'healthy'

Posted: 09 Jul 2008 13:29:11 GMT

Whilst many homeowners are concerned about falling house prices an expert has reassured consumers that any correction in values is good for the market.

Whilst many homeowners are concerned about falling house prices an expert has reassured consumers that any correction in values is good for the market.

Firstrung has commented that, particularly for first-time buyers, a dip in prices is "healthy" as many currently struggle to get on the housing ladder.

Paul Holmes, operations director of Firstrung, explained that the rise in house prices has only been good news for businesses "but for everybody else who wants to live in a house or hopefully buy a bigger house or step onto the fabled first rung, high houses prices are a nightmare. Prices correcting is healthy".
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The value of properties must be taken in a wider context as the latest price survey from the Nationwide has shown that whilst prices are 6.3 per cent lower than last year they are still four per cent higher than two years ago.

First-time buyers are expected to raise larger deposits in the current market. According to the Council of Mortgage Lenders, the average deposit in April was 13 per cent, the highest level in over three years.

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