Tumbling Property Prices Attracting First Time Buyers

MANY first-time buyers previously priced out of the property market are now considering a purchase, as house prices fall and mortgage rates are expected to come down.

Property prices have fallen by around 12 per cent in the past 12 months, according to the Halifax, and analysts are forecasting further falls of at least 15 per cent over the next year. But experts warn new buyers still risk high monthly repayments unless they have a hefty deposit.

“Now is the best time to buy property since the Nineties,” said Gary Murphy, spokesman for the Royal Institution of Chartered Surveyors and partner at Allsop, the auctioneers.

“Prices have come right down and we are approaching the bottom of the market, so if you can afford to, you should buy now, as it’s only a matter of time before we’ll see prices rising again.”

Melanie Bien from broker Savills Private Finance agreed it was now a buyer’s market. “Anyone buying now should be able to negotiate a sizeable discount on the asking price,” she said. “First-time buyers have the added advantage of not being in a chain.”

The latest figures from the National Association of Estate Agents (NAEA) showed the average percentage of first-time buyers on estate agents’ books was 9.5 per cent in September — an increase from 8.3 per cent the previous month.

“First-time buyers seem to be returning, and this is most likely due to the Government’s decision on stamp duty last month — when it lifted the statutory threshold from £125,000 to £175,000 for the next 12 months,” said Chris Brown, president of the NAEA.

“For those first-time buyers who have the correct finance in place, now is the perfect time to buy a home.”

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