Current housing conditions present opportunities for first-time buyers

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by Kay Murchie

According to Smart New Homes, the conditions in the housing market can offer huge opportunities for first-time buyers. The company believes that the average UK house price could start to increase as early as March.

Hometrack, the housing intelligence business, said house prices fell for five consecutive months this month, consequently Smart New Homes say this has made many properties more affordable to first-time buyers.

David Bexon of Smart New Homes said in spite of a slow start to 2008, new home prices are likely to pick up over the next few months, as buyer confidence returns, fuelled in part by a series of further interest rate cuts which I would expect to see commencing as early as March.

The current dip in prices across the new homes market makes now an excellent time to buy, conclude Mr Bexon.

The latest research from estate agent Spicerhaart established that first-time buyers are returning to the market due to the recent cuts in interest rates.

Spicerhaart reported a 2% increase in numbers last month. Currently, 30% of property purchasers are first-time buyers.