House price rises 'disappointing for first-time buyers'

Posted: 03 Feb 2010 10:19:45 GMT

The projected rise in house prices makes "disappointing" news for first-time buyers, it has been suggested.

Helen Adams, managing director of FirstRungNow.com, says that it is still difficult for potential first-time buyers to take advantage of low-priced housing.

This is due to the fact that mortgage lenders are yet to bring suitable home loan products on to the market for this group of would-be purchasers, she adds.

Ms Adams' comments come in response to recent projections by the Centre for Economic and Business Research, which stated that average UK house prices are expected to grow by more than six per cent over the coming year.

Furthermore, by 2013 they are predicted to be approximately 20 per cent higher than today's levels.

But Ms Adams says that she does not see these house price rises being sustainable due to social and economic factors such as job losses and people continuing to be prudent with cash.

Property values during the month of January saw a year-on-year rise of 8.6 per cent.

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