Price slowdown offers glimmer of hope for first time buyers

02-Jul-2007

A new study from Hometrack has revealed that property values rose by just 0.3 per cent in June, half of May's 0.6 per cent rise, offering encouragement to first time buyers.

Prices in London, often seen as a reliable indicator of the state of the UK market as a whole, also fell in June, down to 0.7 per cent from 1.3 per cent.

Last week Nationwide reported strong price growth for June but advised that a slowdown was likely to materialise in the future, with the Hometrack figures suggest that this occurrence may already be taking place, despite a rise in the number of sellers going to market.

"The growth in supply comes at a time when demand is faltering on the back of recent increases in interest rates," advised Hometrack director of research Richard Donnell.

"Housing market sentiment appears to be turning with buyers likely to become increasingly price sensitive over the second half of the year," Mr Donnell added.

To find out about the different ways of financing a first home, see our section ‘Affording Your First Home’.

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