'Rental demand to keep booming until massive price correction' |
15 2008 |
| Prospective first-time buyers will only be able to move out of the rental sector if there is a substantial correction in house prices, experts have claimed. Coming soon after the government announced plans to give would-be buyers a boost by offering grants of £1,500, the director of property specialists Firstrung has argued that such initiatives will do little to minimise the affordability problems facing millions. While Paul Holmes welcomed the government's appreciation of the need for thousands of new homes to meet the booming demand, he added: "I'll tell you what first-time buyers need more than anything - a moderate or a significant correction in house prices of about 20 per cent. "That's the best gift that a first-time buyer can have." According to the latest House Price Index published by Rightmove, house prices across the country rose by 0.8 per cent in March, in spite of the global credit crunch, suggesting that demand for rental accommodation is likely to remain high for some time yet.  |
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