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February house price drop 'gives FTBs brief respite'

26-Feb-2010

House prices fell by one per cent in month-on-month figures for February, released this week by Nationwide.

News of the slight reduction in the market is, according to the building society, positive for first-time buyers (FTBs) who have been priced out of getting on the first rung of the property ladder in recent times.

However, it is likely to take more than a one per cent drop before prices become affordable for the majority of would-be FTBs - leaving many considering the respective merits of shared equity mortgages.

Martin Gahbauer, Nationwide's chief economist, said: "A pause in the upward trend will be a relief to potential first-time buyers who are no longer benefiting from the stamp duty holiday and for whom affordability had begun to deteriorate again."

Recent rises in house prices and a tightening of the belts by lenders has caused FTBs to become far more reliant on parental help, with a study by the Children's Mutual last week showing that mums and dads spend an average of £30,000 on their offspring between 18 and 30.

How to buy a house from finding your first property, first time buyer mortgages, mortgage advice, shared equity, shared ownership, joint ownership, part buy part rent and HomeBuy. All a first time buyer could need as well as first time buyer news at FirstRungNow.com.

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There's alot going on! What do you think?

Interest rates are low but could rise? Is this a good time to buy?

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Varialbe rate mortgages go up if bank interest rates do. Which is your preference?

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House prices are waivering. Do you think this is a good time to buy?

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Shared equity mortgages allow you to buy a new home with 5% deposit and an equity loan through FirstBuy. What do you think?

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Rent to buy allows you to peg a property price, save towards a deposit and pay reduced rent. What do you think?

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