House prices to 'keep young buyers out of the market'

Posted: 01 Feb 2011 13:32:13 GMT

Whereas first-time buyers may struggle for some time, an industry spokesman has suggested other people will be pleased by stable house prices.

Stabilising prices in the UK property market could make things difficult for younger people, it has been claimed.

Matt Griffith, spokesman for PricedOut, acknowledged that costs could potentially "tread water" for a significant period and explained how it might affect first-time buyers.

"It would leave the younger generation in a deeply unsatisfactory no man's land and keep homeownership out of the reach of many people for some time to come," he said.

However, Mr Griffith commented that for others, wage inflation may make purchases possible due to an adjustment of affordability.

Expecting that values will fall over time but not enough to disgruntle current owners, he suggested that for the government the situation represents a 'get out of jail free' card.

A recent Rightmove Consumer Confidence Survey revealed that for the fifth consecutive quarter, the proportion of people predicting similar house price conditions this time next year has risen – it is presently at its highest ever level.
 

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