Number of first-time buyers dropping
15/10/2007
New research has revealed that the percentage of people considered to be first-time buyers has fallen over the last few months.
A study by moneysupermarket.com found that since March first-time buyers have fallen by 20 per cent - a trend the firm attributed to rising house prices, high interest rates and fewer suitable properties.
Louise Cuming, head of mortgages at the company, said: "It looks like the attrition of first-time buyers as they either move out of owner occupation or onto second time purchases is occurring at a much faster rate than new first-time buyers coming into the market."
With recent financial uncertainty, lenders have chosen to act "independently" of the Bank of England when setting rates for mortgage products, she said, adding that it is "not surprising" that many first-time buyers are cautious of buying property.
Michael Coogan, director general of the Council of Mortgage Lenders, recently said that affordability conditions remain "challenging", especially for people with poorer credit histories as lenders look to balance out risk with higher mortgage costs.
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