7 Feb

More 'affordability' for first-time buyers

More 'affordability' for first-time buyers

First-time buyers may find it easier to buy houses for sale in 2011 as prices remain low.

The latest Halifax Price Index has revealed that prices in the  three months to the end of January were 0.7 per cent lower than in the previous quarter.

Martin Ellis, housing economist, said: "We also expect interest rates to remain very low for some time, supporting a favourable affordability position for many existing mortgage borrowers and those entering the market."

First-time buyers looking for property for sale in the UK could benefit from the combination of low interest rates and low house prices.

However, the industry needs to do more to help people to get onto the property ladder, according to property investment firm Ducilian.

Timothy Lambert, head of consulting at Ducalian, says people looking to secure a mortgage are wary of additional debt.

He said: "The industry must help first-time buyers or the ladder remains static.

"Banks are offering 30-year mortgages as opposed to the traditional 25 and this helps spread payments."

The industry needs to keep coming up with solutions for first time buyers, he added.ADNFCR-1222-ID-800388496-ADNFCR

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