First time home buyer news: Cost of new property to rise by 10%

26-Jun-2006

First time buyers may see a ten per cent increase in the average price of a new home over the coming year, according to predictions.

Now is an excellent time for the first time home buyer to get onto the property ladder, with 70 per cent of homebuilders predicting an increase in prices over the next 12 months, data from SmartNewHomes.com suggests.

Finding affordable housing was cited as the most important issue facing the aspiring homeowner, with homebuilders viewing the government's competition for a £60,000 house as an excellent initiative to help people onto the first rung.

David Bexon, managing director of SmartNewHomes.com, said: "We are very aware that affordability is an important issue, in particular for first time buyers and I would strongly agree that the government's competition for a £60,000 house could steer developers in the right direction, offering a more affordable solution for some buyers."

After seeing a decrease in house prices last year, inflation has grown every month since February, with a three per cent rise in March and a 1.4 per cent increase in May 2006.

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