First time buyers advised to compromise

31-May-2005

A new study has found that the majority of aspiring homeowners are finding that they cannot afford their favourite house because of soaring prices.

As house price inflation has seen massive growth in recent years, more and more first time buyers have been priced out of the market for their first choice home because they are unable to find a deposit or find a mortgage.

Click here for advice on first time buyer mortgages or to find out how much you can borrow and how much it will cost you, from the UK's leading High Street Brokers, Bradford and Bingley

Now, Bradford and Bingley's First Time Buyer Report has found that nine out of ten aspiring first time buyers fail to get the house that they want.

But the building society is advising aspiring homeowners not to give up altogether when looking for a property, and that more people should be willing to settle for a cheaper property so as to give themselves a footing on the property ladder.

Some first time buyers are choosing to wait until they can afford their dream home, but Bradford and Bingley argues this is a false economy because a first time buyer will have more financial security after a few years in a new property than an aspiring homeowner living in rented accommodation.

Click here to ask about the legal costs of house-buying or to ask a legal question specific to your own situation

Duncan Pownall, from the building society, commented that "a degree of compromise is often required and first timers need to be flexible".

However, he also pointed out that the slowing property market now means that first time buyers are increasingly in demand, and therefore have more bargaining power than they are aware of.

"While it was not always possible for purchasers to negotiate when the property market was at its most buoyant, now the market is softening there is less excuse," he explained.

Click here for our first time buyers guide

Click here for further information on finding a deposit

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