Housing situation 'good for first-time buyers'

A spokesperson from the National Association of Estate Agents has urged first-time buyers to get a foot onto the property ladder now if they can afford to.

Chris Brown, president of the organisation, said that consumer confidence is still low, resulting in a downturn in the sales of houses.

However, he commented that this could help those looking to get a mortgage for the first time.

"For first-time buyers who have the adequate funds in place and can secure mortgages, now is a time they can operate as opportunists and take advantage of the market and the properties and prices currently available," he commented.

Simon Dunn from the company's Yorkshire branch added that first-time buyers could obtain properties at bargain prices at present, providing they will not need to sell within a year.

According to Rightmove, the average asking price of a UK home fell by 1.8 per cent between June and July 2008.

Meanwhile, Barclays and Abbey have become the latest mortgage lenders to announce rate cuts as the cost of an average two-year fixed-rate mortgage fell below seven per cent for the first time in weeks yesterday (July 21st).