2 Jan

First time buyers 'to benefit from house price falls'

First time buyers 'to benefit from house price falls'

First time buyers are well poised to take advantage of any dips in house prices next year, it has been claimed.

According to data from Halifax, the number of first time buyers entering the UK property market fell to 300,000 last year.

This was the lowest level in 27 years and is 44 per cent lower than the number taking the plunge in 2002.

However, with analysts predicting a dip in house prices soon, first time buyers who have been struggling with affordability and raising large deposits could be poised to capitalise, Simon Rubinson, chief economist at the Royal Institution of Chartered Surveyors (Rics) said.

He commented: "While first-time buyers continue to struggle to access the housing market, the conditions should start to gradually thaw throughout 2008.

"[There] is huge pent up demand from first time buyers and should house prices drop in the early part of the year, many will be ready to pounce."

News of Mr Rubinson's projections come after a survey published last month by the Building Societies Association showed that raising a deposit remains the largest barrier to home ownership faced by first time buyers.

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