First time buyers face further difficulties

18/02/2010

First time buyers may find it harder to get on to the property ladder as housing prices have once again increased.

Young families struggling to manage their finances have been faced with a further hurdle as the latest housing price index has shown that house prices in December 2009 were 2.9 per cent higher than in the same month in 2008.

Simon Rubinsohn, chief economist of at the Royal Institute of Chartered Surveyors, warned that the housing market is likely to get tougher towards the end of the year, even if prices do stabilise.

Mr Rubinsohn said: "However, although things are looking better at the moment, the second half of the year is likely to be more challenging again. Not only is the cost of secured borrowing likely to move higher, but the pre-announced increase in the top tax rate will begin to bite.

He added: "Further fiscal tightening could also be announced after the general election. As a result, we suspect that the price trend is likely to stabilise and possibly turn down in the latter part of 2010."

Posted by Jim Mead

Tags; Young Family Finances,

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