Everest industry news
First-time buyers to benefit most from price falls
02 July 2008
First-time buyers will be the "major beneficiaries" of house price corrections, according to the housing solutions provider Firstrung.Paul Holmes, operations director at the firm, which specialises in helping consumers climb the first rung of the property ladder, believes things are looking up for those waiting to buy.
"As the market corrects, the future is very bright for first-time buyers," he said, recognising that most would-be buyers simply want a place to call their own.
At present, Firstrung estimates that the typical first-time buyer needs to find £20,000 to cover the deposit, stamp duty and other "incidentals" necessary to secure a property.
This is based on the average initial purchase costing £155,000.
As prices fall and new affordable housing becomes available, Mr Holmes expects that many first-time buyers will be spending in the region of £100,000, with a deposit nearer to £15,000.
He is predicting a 15 per cent slide in average prices from the peak in August 2007 by the end of this year.
"The major beneficiaries of a correction in house prices are first-time buyers and that has to be a good thing," he concluded.
New buyers worried about keeping down the costs associated with owning a property should consider practical investments such as double glazing and insulation, which can help significantly reduce fuel bills in the long run.
