4
Jul
House price collapse would help first-time buyers
First-time buyers looking to invest in property through an estate
agent would benefit from a "collapse" of house prices,
according to an expert.
Paul Holmes, chief executive of Firstrung, said that if this were
to happen then it would mean that the "economy really has gone to
hell in a handcart".
His comments came after Rightmove reported that the number of
first-time buyers was at its highest level for nearly three
years.
However, Mr Holmes disputed these figures and pointed to data which
showed that youth unemployment has doubled in the past ten years,
making it harder for investors to get their hands on funds for a
deposit.
"Plus there is the fact that if you are a first-time buyer now, the
majority of lenders are still looking for 20 or 25 per cent
deposits. When you take all of that as a backdrop, how on earth
– mathematically or logically – could first-time buyers
be increasing?" he added.
Rightmove had said that the average on the ladder age had dropped
by one year as first-time buyers were "getting their act together",
while two-thirds of intending investors were looking to do so with
a partner.