Lower property prices in the UK are tempting first-time buyers back into the market, and they now make up around a quarter of those planning to buy a house in the coming year, according chittachatta, which cited a new report by the property website Rightmove.
This increase coincides with an expected fall in property costs over the same period, according to the report, despite the mixed data which has come out on the property market over recent weeks.
For example, Halifax last week released a report showing a rise of 1.8 per cent in the average cost of homes in October, following a sharp fall of 3.7 per cent in September; however, Nationwide reported a house price index fall of 0.7 per cent last month – knocking £2,400 off the average cost, the news service reports.
“Lower property prices might well strike fear into the hearts of property-owners, but it will be music to the ears of those eager to take their first step onto the property ladder,” Miles Shipside, the director of Rightmove, reportedly said.
“The success of agents in convincing sellers to be more flexible on price lowers one of the key hurdles faced by first-time buyers and sets a precedent for all sellers in a chain to accept their share of the reductions. The required mobility of the market cannot be satisfied by short chains and cash buyers, and recovery will be quicker if more sellers are willing to negotiate on price and in doing so make it easier for those purchasing for the first time,” he added.
Meanwhile, the research reportedly showed that couples were predominant among people hoping to buy a new home, accounting for 69 per cent of hopeful buyers; this was followed by people trying to buy on their own (at 28 per cent), with parents (2.5 per cent), and with friends (1 per cent).
