Winter months 'a good time for new buyers'

Date:Wednesday 25th November 2009
Author: Susanna Kavka

A predicted lull in property price increases could make the coming months a good time for first-time buyers, according to a property expert.

Katie Tucker, technical manager at mortgageforce, said that the appetite for borrowing has increased, but the current rate of borrowing is at less than half of what it was in October 2007.

Traditionally, prices will fall at this time of year, she explained, which is good for first-time buyers looking to get a more manageable mortgage.

However, there are concerns the market may stall as prospective buyers wait to see if the stamp duty holiday is extended into the new year.

Ms Tucker described the uncertainty around the tax as being "one of those things where it doesn't make people buy, but it stops people from buying if they hear a rumour that it is going to be extended".

These comments were made following the release of figures by the British Bankers' Association, which showed that in October, 42,238 new mortgages were approved, an increase of 97.7 per cent on the same month in the previous year.