First-time buyer optimism improving

Wednesday, 30 January 2013

The first-time buyer market is steadily improving as prospective homeowners take steps to boost their chances of property market success.

That is the opinion of Dr Catherine Hearnden, chief executive of MyMortgageDirect, who said that house prices are unlikely to rise in the next 12 months.

This is good news for people intending on buying property in that period as it means their saving requirements are unlikely to change substantially.

"I think people just read in the media that prices haven't dropped or they've just gone up ever so slightly but I can't see a reason for anything to be very much different than it is now," she predicted.

Her advice to prospective home insurance customers is to be confident, as confidence in the market is likely to assist them in the long run.

The key will lie in people being aware of the realities of buying a house and whether it is more cost-effective than renting.

"The mortgage rates are there, the deals are there. People need higher deposits. Personally I'm not convinced that they should be encouraged by reducing the amount of deposit or lending them more because we'll be back to square one," Ms Hearnden said.

She added that first-time buyers are certainly becoming more optimistic, not only about their own situations, but the market as a whole.

"I do believe there should be help for first-time buyers but not to the point where they are ending up borrowing more than they can afford," she added.

The expert said that often there are people who would be better suited to renting but instead are finding themselves buying houses.

"There are more people buying properties than should be buying properties, than should have brought properties, and sometimes it is just not appropriate."

Posted by Noel Martin.

Copyright Adfero Ltd.

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