First-time mortgage buyers told prices will drop

Date:Wednesday 19th August 2009
Author: Max Freedman

First-time buyers looking for a mortgage deal have been advised that there will be "further falls" in house prices.

Katy John from the affordable housing campaign website PricedOut.org.uk claimed that it is not yet the right time for first-time buyers to enter the property market as asking prices are too high.

She pointed out that the average house price currently stands at more than five times the average income and urged people not to borrow more than they could afford.

"PricedOut.org.uk anticipates that we will see further falls in house prices, and, as such, would urge first-time buyers considering buying now to make sure they bargain for a good price," she said.

The latest Lombard Street Research/Daily Telegraph housing affordability index, which was published on August 16th, rose from 108.4 points to 118 in the first quarter of 2009 which means houses have shifted into the "affordable" band.