Recession ''could be good news for some first-time buyers''

By MoneyhighStreet Staff. Published on July 13, 2008 This post currently has no comments.

Selling up
A recession could actually be good news for some people, as it will let them get a mortgage and onto the property ladder.

That''s according to David Kuo, head of personal finance at Fool.co.uk, who said that some first-time buyers would benefit from a house price slump.

Commenting after figures from the British Chamber of Commerce suggested earlier this week the UK could enter a recession in the coming quarter, Mr Kuo said that people with money put aside could end up being able to pick up bargains, as sellers are forced "to slash prices in order to drive up demand again".

He explained: "There are a lot of people who have been on their knees praying for a housing recession because they have been waiting to get onto the housing market.

"This is one opportunity that comes around once every ten years and as far as they are concerned the best thing that can happen would be if house prices fell to a level where they would be able to afford to get onto the housing ladder because these people have been putting away money for this opportunity."

In general, Mr Kuo said that recession was bad news for people with debt, but "an opportunity" for those with cash to spend.