First time buyers 'can't be indexed to average price'
Pessimistic first-time-buyer projections from Halifax have been questioned by property specialists, but prospects for buying, especially in areas like London, were still claimed to be highly problematic.
First time buyer solutions firm Firstrung, questioned the recent Halifax first-time buyer figures, claiming that it was wrong to judge first time buyer prospects in relation to the average house price.
Halifax said that rising prices in areas like London meant that the average house in 96 per cent of towns were now not affordable to first time buyers, but Firstrung claimed that people at the foot of the property ladder were not dealing with average prices.
Paul Holmes, chief executive of Firstrung, said: "You cannot look at the first-time buyer being Mr Average. Traditionally, the first-time buyer will buy below average price property."
"My information, which is supported the Department of Community and Local Government, suggests that the first-time buyer is spending approximately £160,000 on their first house, not the average price in the UK which is £190,000.
He added, however, that many first-time buyers were still looking at properties for which they would have to put down five to six times their combined income – a financial burden which Mr Holmes claimed should dissuade people from buying and make them continue to rent.
Published 4th January, 2008
© 2008 Estates IT Limited
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Pessimistic first-time-buyer projections from Halifax have been questioned by property specialists, but prospects for buying, especially in areas like London, were still claimed to be highly problematic.