First-time buyers needed to improve housing market

An increase in the amount of first-time buyers applying for the best mortgage rates and taking the first step onto the property ladder is crucial for encouraging movement in the housing market.

According to FirstRungNow.com managing director Helen Adams, it has become increasingly difficult for first-time buyers to access the best mortgage rates and this is having an impact further up the housing chain.

Worries about job security, restricted lending conditions and the difficulty of raising a large enough deposit is stopping new buyers from getting onto the property ladder.

Ms Adams believes that it is important for some homeowners to drop the asking prices on their home to attract first-time buyers and boost the likelihood of them getting onto the property ladder.

She added: "When house prices are lower people stand a better chance of getting a mortgage to enable them to buy."

Leading global estate agents Savills recently predicted that the gap between upper and lower tier house prices will widen in the next five to ten years.
 

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2010-12-17 13:45:15 © Moneyextra.com