FTBs taking advantage of low prices

13-Jan-2009

Falling house prices in the UK mean first-time buyers (FTBs) have been able to take advantage of the economic downturn and get on to the property ladder, it has been suggested.

Although a good deposit is required to offset tighter mortgage lending criteria amid the current economic crisis, FTBs who are able to secure deals are in a good position to take advantage, the Council of Mortgage Lenders (CML) has said.

Nationwide's latest house price index revealed that the average property value fell by 2.5 per cent last month and 15.9 per cent throughout 2008.

House prices are currently at their lowest level since spring 2005, the firm's statistics showed.

Sue Anderson, head of member and external relations at the CML, said: "Clearly FTBs will be benefitting when they do enter the market from the lower house prices that have come through."

However, the effects of the credit crunch on the mortgage industry have led to a decline in the number of high loan-to-value deals available, meaning FTBs need to offer a larger deposit compared to recent years, Ms Anderson added.

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