Some good news for first-time buyers

Posted 2008-04-28

First-time buyers are being advised to sit and wait to see how the mortgage market develops in the near future, as there is the possibility of significant reductions in house prices and very high savings rates.

Andrew Hagger, from Moneyfacts.co.uk, believes that if those looking to secure their first property resist the urge to buy now, they could reap the rewards in the long term.

"If property prices were to fall by 15 per cent in the next 18 months then those who are itching to get their foot on the housing ladder could benefit from a double whammy of very high savings rates and the falling cost of that elusive first property," he said.

Mr Hagger also noted that the number of savings accounts offering attractive interest rates should encourage consumers to save regularly over the next 18 months.

A recent report by Newcastle Building Society found that ten per cent of people preferred to keep their money at home as opposed to a savings account.

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