New buyers 'fighting back' despite slowdown

02-Nov-2007

Fears that first time buyers have been dissuaded from entering the property market because of uncertainty regarding house prices appear to be unfounded, fairinvestment.co.uk has said.

The finance portal has conducted its own analysis of mortgage enquiry figures and revealed that while overall numbers dropped, first time buyers actually increased their market share during the third quarter of 2007.

Similarly, the take-up of 100 per cent mortgages also rose over the same period, fairinvestment.co.uk added, with the percentage of 100 per cent enquiries made by first time buyers up from 77 per cent in Q1 to 92 per cent in Q3.

"Britain's love affair with the property market is far from over, despite the recent dip and the gloomy forecasts for the next few years," said Fairinvestment.co.uk director James Caldwell.

"Our figures suggest that while overall there have been fewer mortgage enquires since the first quarter of 2007, first time buyers are still keen to seek out a deal and are fully prepared to opt for 100 per cent mortgages if it means getting their own home," he added.

However, Mr Caldwell also advised caution when it came to 100 per cent mortgages: "While 100 per cent mortgages may sound like the answer, even just a five per cent deposit could provide the homeowner with some peace of mind under the current climate."

The study appears to contradict recent assertions made by the New Homes Marketing Board earlier this week suggesting that first-time buyers are becoming an "endangered species".

First time buyers 'risking extinction'
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-risking-3587.aspx

First time buyers 'will prop up the market'
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyers-will-3584.aspx

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