Slowing inflation promising for aspiring homeowners

02-Sep-2005

The latest figures from Nationwide have revealed that property price inflation is continuing to slow, bringing hope to many first time buyers.

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Despite prices remaining high, and there being no sign of any crash in the market in the near future, the fact that prices have now been stagnating for nearly a year will be welcome news to aspiring homeowners, as they are now less likely to be priced out of the market.

It also means that now is an ideal time for first time buyers to get a foot on the first rung of the property ladder, as many sellers and estate agents are keen to transfer properties, meaning that the lack of any onward chain will be a big attraction to many sellers.

Mortgage lenders are also looking to first time buyers to boost their earnings, and therefore finding a mortgage is getting much easier for aspiring homeowners.

To find out more about creative mortgages designed specifically for first time buyers click here

However, Nationwide's group economist Fionnuala Earley warns that finding a deposit is still a problem for many first time buyers, with an average deposit being £17,000, compared to around £11,000 in 2003.

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Click here for our first time buyers guide to buying a property

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