Renting the best option, Brits advised again

06 2008
Prospective property buyers have been urged to stay in the rental sector for the time being as it is still unclear which way the market is likely to go.

According to recent research carried out by the website iammoving.com, around one in three first-time buyers use risky methods such as credit cards and unsecured loans so as to raise a deposit for a home.

Such a practice represents a significant risk, experts have warned, while many of those looking to take out a large mortgage also facing the prospect of falling into negative equity should the property market suffer a further slowdown, as is widely expected.

Peter Beckett, business development director at iammoving.com has advised that would-be buyers should wait and see what the market is doing before committing themselves.

"If I was a first-time buyer, that's what I would do," he said.

"If you rush into something now, you could find yourself in a negative equity position, having borrowed in order to be able to afford to secure the property in the first place. The mid-term implications of it are that things will slow down for first-time buyers until the market stabilises."ADNFCR-1219-ID-18581346-ADNFCR

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