Home valuation changes 'bad news for first-time buyers'

13 2008
Prospective first-time buyers may have even more difficulty in getting onto the UK property ladder once new rules covering home valuation come into effect at the start of next month.

Under rules proposed by the Council of Mortgage Lenders (CML) back in June and due to take effect within the coming days, the processes will be put into place to ensure that buyers are able to see true value of a property, including the amount it may depreciate over the short-term future.

However, though many experts have praised this drive towards greater transparency in the property market, some observers have warned that the move could push the price of new-build homes up even further.

Helen Adams, managing director of FirstRungNow, commented: "It's good for first-time buyers in that there will be transparency and it will be good for the lenders, but on the other hand, they might find it harder to get a mortgage as big as they want it to be."

These comments are likely to add to the confusion facing would-be buyers after both Nationwide and Halifax recently reported price drops and many could opt to stay in the rental sector until market conditions become clearer. ADNFCR-1219-ID-18730219-ADNFCR

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