First time buyers predicting lower price rises

15-Aug-2007

First time buyers and others looking to sell or purchase property believe that house price growth will continue over the next twelve months, but at a lower level than has currently been seen, according to a study from propertyfinder.com.

The study revealed that buyers and sellers believe that prices will rise by an average of five per cent over the course of the next year, with supply shortages in terms of both properties on the market and new homes being build nonetheless helping support the market.

Four fifths of respondents said that higher interest rates and mortgage costs would be the cause of the slower growth.

"The housing market is still in very good health so far. It has moderated in a controlled way and is reacting just as the MPC would have hoped," commented propertyfinder.com chief executive Warren Bright.

"Changes in consumer attitudes are the first indicator of market conditions to come so we should expect house price inflation to continue to slow," Mr Bright added.

More and more first time buyers are turning to their friends for advice on choosing a mortgage, Abbey revealed earlier this week.

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