FTB purchases 'should be delayed'

Posted: 13 Dec 2011 16:00:12 GMT

People should hold out for a more reasonable market before stepping on the property ladder.

First-time buyers (FTBs) eager to get their foot on the first rung of the property ladder may be best advised to delay such movement for the time being.

This is because Matt Griffith, spokesman for PricedOut - a campaign group for affordable housing founded in 2006 - has noted the outlook for this group will be rather grim in 2012, with high deposit requirements coupled with a fall in real wages.

The industry figure noted the possibility of another recession, which will lead to banks restricting lending once again, means FTBs may be wise to put their plans on hold for now.

He stated these individuals "would probably be wise to avoid becoming [FTBs] next year and batten down the hatches whilst they wait out for a saner housing market and lower prices".

FTBs may find consolation, however, in the likelihood that house prices are likely to dip in the coming months, making affordability less of a problem.

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