Borrowing costs 'putting off buyers'

15-Feb-2007

In news which may be of interest to first time buyers, new data shows a decrease in new buyer enquiries.

According to survey data published by the Royal Institution of Chartered Surveyors (Rics), new homebuyer enquiries have declined for the fourth consecutive period, which may indicate that would-be first time buyers are acting cautiously after recent interest rate rises.

"Interest rate rises are having the desired impact of stabilising the market," said Jeremy Leaf, a spokesman for Rics.

"The Bank of England's hawkish activity has deterred some buyers who have started to hesitate before taking the property ladder plunge," he added.

To find out about the different ways of financing a first home, see our section ‘Affording Your First Home’.

Indeed, according to the organisation, in January 28 per cent more surveyors reported an increase in house prices, a decrease of 8.6 per cent from the previous month.

In related news, according to a report by Nationwide, average monthly costs for first time buyers have increased by £120 over the last 12 months.

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