Property market conditions 'advantageous for first-time buyers'

Posted: 26 May 2009 09:44:34 GMT

Conditions in the housing market are currently "fantastic" for first-time buyers, according to a residential property expert.

Mike Bickerton, director of property consultancy DTZ Residential, explained that the decline in house prices and the all-time low interest rates have combined to make home ownership a more realistic aspiration for many people.

At the height of the property boom in 2007, buying a first home seemed like an impossible dream to many, but house prices have since dropped to a more realistic level.

Mr Bickerton advised those attempting to take advantage of market conditions to look beyond asking prices and do some research on sale prices in order to ensure they are in a position to make an informed offer.

However, he warned that the level of deposit now demanded by mortgage lenders could be acting as a barrier to the market.

"Raising 20 per cent or more of the asking price, which even for a modest flat may be in excess of £30,000, is for many an insurmountable hurdle," Mr Bickerton said.

A recent report by the National Association of Estate Agents revealed that first-time buyers are starting to return to the market, as they now account for 23 per cent of sales, compared to 7.7 per cent in April 2008.

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