First-time buyers 'need prices to come down'

Posted: 17 Feb 2011 13:18:29 GMT

Prices, rather than mortgage constraints, are the biggest issue for potential homeowners, according to an expert.

House prices are the most important issue facing first-time buyers, an expert has argued.

Matt Griffith, spokesman for campaign organisation PricedOut, suggested improving affordability is the best way to help people in this category get on the property ladder.

He was commenting after housing minister Grant Shapps held a summit aimed at exploring the potential options available to first-time buyers.

Mr Griffith stated the "wrong solutions" were discussed, as urging banks to lend more or make risky products more widely available is unlikely to be successful.

"It is hard to see how a problem caused by loose lending will be solved by more loose lending," he added.

Speaking following the government discussion, a Council of Mortgage Lenders representative said constraints on finance are affecting the entire market and while £360 billion was provided at the pre-credit crunch peak, gross lending for this year is expected to be around £135 billion.
 

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