First-time buyers 'vulnerable' in 2008
Published On 10 December 2007
During the year ahead, first-time buyers may find themselves feeling a little "vulnerable" in the market, although conditions could be a double-edged sword for this group.That's according to Sue Anderson, head of external affairs at the Council of Mortgage Lenders, who said that the year ahead could be both good and bad for prospective homeowners.
"On one hand, if the prices come down or even if they just stabilise, to a degree, that is good news for first-time buyers," she said.
This could allow earnings to catch up slightly with house prices, which is likely to make a mortgage more affordable for first-timers.
"But," Ms Anderson added, "on the other hand, first-time buyers are going to be a group who are probably as vulnerable, if not more vulnerable, than everyone else to confidence issues and expectations of what is going to happen".
Figures released recently by Halifax revealed that house prices fell by 1.1 per cent during the month of November, meaning that annual house price growth dropped to 6.3 per cent.
