Falling house prices 'a godsend for FTBs'

28-Oct-2008

The downturn in the UK property market is a "godsend" for first-time buyers (FTBs), according to Alan Harper, head of mortgages at Moneyfacts.co.uk.

Mr Harper said that many potential FTBs who were once priced out of the market can now realistically look to get onto the property ladder.

His comments come as figures published by the Land Registry today revealed that house prices are falling at an annual rate of eight per cent.

This rate has increased from the 4.6 annual rate recorded by the group in its previous monthly survey.

FTBs could be taking a gamble if they wait, as market conditions could change making mortgage rates more expensive next year, Mr Harper warned.

But he added: "Get the timing just right and there is the possibility of big savings to be made."

Moneyfacts.co.uk suggested that the average UK house price could fall to £150,121 by October 2009, compared to this month, with the respective mortgage required decreasing in value from £131,150 to £105,521 over the same annual period.

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