Price falls bring hope to first time buyers

17-Sep-2007

The average price of a home fell by 2.6 per cent in September, Rightmove has said, raising speculation that more first time buyers may now be able to purchase a property.

While the Rightmove study acknowledged that such a figure had been skewed by lower numbers of four bedroom properties coming on to the market as a result of the phased introduction of Home information packs (Hips), other properties also saw prices drop.

Terraced homes saw asking prices fall by 1.7 per cent, semi-detached properties by two per cent and detached homes by 4.2 per cent, the report found.

"Sellers are now facing the challenges of a cooling market and the highest interest rates for six years," commented Rightmove commercial director Miles Shipside.

While some analysts have suggested that recent price slowdown has been due to a lack of first time buyer interest, others such as Haart estate agency have said that they expect prospective homeowners to return to market in the autumn in light of lower prices and a period of interest rate stability.

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