First-time buyers 'facing higher house prices'

The average asking price for an entry level home has increased for the fourth consecutive month, according to FindaProperty.com.

A new report shows that the average first-time buyer property is on the market for £155,677 - an increase of 1.2 per cent in the last year and the highest level since February 2009.

According to Katy John, spokesperson for PricedOut.org.uk, rising house prices are again "causing misery" for millions of people, who are unable to access the cheap mortgages they require.

Only those with well-paid jobs or rich parents have any hope of accessing the housing market, she suggested.

"With levels of home ownership at record lows in the UK, we desperately need to see house prices stabilising and gradually adjusting to more affordable levels over time," Ms John said.

She added that the new government must "urgently tackle the social and economic crisis" by scrapping tax breaks for "property speculators".

Moneyextra.com recommends you take independent financial advice before acting on any article

Back

2010-05-19 13:10:08 © Moneyextra.com