Debt crisis to hit property values, finds Northern Rock

28 January 2005
Northern Rock's chief executive has said that the first-time buyer market is set to be slow as young adults get deeper into debt.

Adam Applegarth, the bank's chief, said that this would mean the entire housing market would stagnate in the short term, according to The Times.

"The level of indebtedness among 18 to 23-year-olds makes it difficult for first-time buyers," Mr Applegarth explained.

He added that the buy-to-let market would continue to boom as there are few homes available for first-time buyers.

Mr Applegarth issued this warning as Northern Rock revealed record profits for 2004 of £431 million, up13 per cent on 2003.

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