First-time buyers 'still face challenges' getting on property ladder

27/08/2009

Young families and others looking to buy their first home still face a number of obstacles to getting on the property ladder despite a recent fall in asking prices, it has been claimed.

Earlier this month, the Rightmove House Price Index showed that sellers have lowered their valuations by an average of 2.2 per cent in August, with the typical property price set at £222,762.

During July, asking prices rose by 0.6 per cent.

Bernard Clarke of the Council of Mortgage Lenders (CML) said the latest fall in prices reflects the difficult conditions in the mortgage market and the wider UK economy.

He added that while lower prices will encourage more house hunters to consider entering the market, many prospective first-time buyers could still struggle to secure a mortgage, particularly with the "sizeable deposits" required by many lenders.

They will also have to overcome shaky confidence regarding job security, the future of property values and the overall direction of the economy, Mr Clarke noted.

According to the CML's latest statistics, gross mortgage lending climbed by 26 per cent during July to £16 billion. This is lower than the July average for past seven years, which stands at £27 billion.

Tags; Housing Debt and Bills, Young Family Finances,

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