First-time buyers to 'benefit from price correction'

First-time buyers will be the group most likely to benefit from a projected correction in house prices, one expert has said.

According to Paul Holmes, operations director of Firstrung, those looking to get a foot on the property ladder may be able to get a cheaper mortgage when the expected drop of 35 per cent occurs on current house prices.

He pointed out that this fall would allow potential buyers to save up and put down a more substantial deposit, thereby making them a more attractive prospect to lenders.

"This may not be the best time economically, it may not be the best time for job opportunities either, but as the market corrects, the future is very bright for first-time buyers. The major beneficiaries of a correction in house prices are first-time buyers and that has to be a good thing," Mr Holmes commented.

According to figures from the Council of Mortgage Lenders (CML) the average first-time buyer put down a deposit of 13 per cent in April, which is the highest level in over three years.

First-time buyers typically took out loans for 3.3 times their income, down from 3.35 the previous month. The average home mover loan was 2.96 times their income, down from 3.0 in March.