Buyers' market enables first-time buyers to drive a hard bargain
First-time buyers are forcing down property prices, it has been claimed.
It seems that the group is becoming increasing influential as the credit crunch impacts on existing homeowners to make it a buyers' market.
As a result, first-time buyers have been able to drive down asking prices. Research conducted by moneyextra.com suggests the average property value now being considered by first-time buyers has fallen to £170,559, down 5.75 per cent on March levels.
"While it may be getting tougher to get a mortgage now, it would appear that those first-time buyers who are in a position to buy are driving much harder bargains with sellers," commented Robin Amlot, senior editor of Moneyextra.com.
"Housing is very definitely a buyers' market now rather than the sellers' market that existing homeowners had become used to."
However, first-time buyers are also taking on more debt than in the past in order to fulfil their property dream, the survey shows.
The average loan-to-value ratio is currently at its highest ever level - 82.89 per cent.
posted by allinsurance @ 6:41 AM
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