First time buyers in the UK are facing tough market conditions, new analysis from Firstrung confirms.
First time buyers are struggling in the current mortgage market, new analysis from Firstrung suggests.
According to the market specialists, the situation might even be "as bad as it's ever been", although there still remains hope for the future in the long term. Recently, the property sector has taken a bad knock due to the general economic downturn stemming from the credit crunch.
Falls in house prices have been registered on surveys from lenders Nationwide and HBOS, knocking consumer confidence and leading to many firms taking mortgage deals off the market. House sales are also on the wane: research from the Land Registry detects a fall in UK transactions between late 2006 and late 2007, from 117,000 to 91,000.
Moreover, the spectre of negative equity appears to be causing particular concern to buyers. A recent report from Fool.co.uk shows that 23 per cent of 24 to 34-year-olds - a prime age to buy a first home - were worried about becoming financially trapped in this way.
Commenting on the overall health of the market, Firstrung chief executive Paul Holmes said: "It’s as bad as it’s ever been for first time buyers but hopefully we are entering the period where it will start to be good again.
"Once all the froth disappears from the market place then hopefully it will be a time when first time buyers can begin to thrive, but it’s not going to be a short journey."
