First-time buyers struggling to climb onto property ladder

02-Apr-2009

First-time buyers are still struggling to access the housing market, despite signs that prices are beginning to stabilise, according to the Royal Institution of Chartered Surveyors (Rics).

Simon Rubinsohn, chief economist at Rics, said that "the issue of first-time buyer accessibility" was "unlikely to be resolved" quickly.

He added that interest rates on mortgages would act as an "impediment for many potential homebuyers who want to take their first step on the property ladder."

Mr Rubinsohn was commenting on the latest Nationwide house price index which was released today.

The index showed that last month house prices had risen for the first time since October 2007.

Compared to February's figures, the price of an average house in March was 0.9 per cent higher, a £3,000 increase.

But the index also showed that the value of an average flat had dropped 22 per cent since autumn 2007, compared to the price of a semi-detached property, which had fallen by 18 per cent.

Fionnuala Earley, chief economist at Nationwide, said that since flats would typically be bought by first-time buyers, the price drop showed that deposit constraints and affordability was affecting the niche market.

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