7 Jun

House prices rise as first-time buyers 'fear missing out'

House prices rise as first-time buyers 'fear missing out'

First-time buyers anxious to get on the property ladder are settling for asking prices when they should agree a better price, according to one expert.

Timothy Lambert, head of consulting at Ducalian, was responding to a survey conducted by Nationwide which showed house prices have increased by 0.5 per cent during May.

He believes the rise in prices is in part due to the "honeymoon period" following the election of a new government as consumers begin to embrace a more stable economy.

However, Mr Lambert does not think prices will rise fast and expects them to even out over the coming year.

He also warned of a future where more houses could come on the market depending on the government's plans concerning capital gains tax (CGT).

"If CGT is increased from April next year, we will see a large number of landlords selling before then," he said. "This may affect prices within the general market."

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