First time buyers 'frightened away'

19-Mar-2007

First time buyer enquiries have fallen significantly, new research suggests.

According to research by the Royal Institution of Chartered Surveyors (Rics), the number of first time buyer enquiries has fallen at a rate not seen since April 2003, reports the Western Mail.

"The interest rate rises have started to worry would-be buyers, with many concerned they will be unable to meet mortgage repayments," said Cathy McLean, a chairwoman for Rics Wales.

"Market conditions remain tight," she added.

Indeed, although house prices rose for the 16th consecutive time last month, house price inflation has decelerated to a level last seen in May 2006.

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

In related economic news, there is a chance that the UK's rate of inflation exceeded the Bank of England's target rate of two per cent last month for the tenth consecutive time, according to Bloomberg.

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