'Too early' for renters to think about buying

06 2007
Despite recent reports pointing to an end to soaring house prices, it is still "way too early" for prospective first-time buyers to get excited, experts have stated.

While prices were seen to fall by 1.1 per cent in November, in annual terms they were up by 6.3 per cent, meaning that the problem of affordability facing many is as acute as ever.

"For first time buyers it is way too early to celebrate," explained Paul Holmes, the chief executive of firstrung.

"We need a one per cent decrease in house prices each month throughout 2008 and 2009, to knock off 24-25 per cent. Knocking that much off in 2008 to 2009 would only take us back to 2004, when first time buyers were still finding it difficult."

The comments come as growing numbers of professionals are turning to the rental sector rather than struggling to get a foot on the property ladder.

According to the latest figures from Abbey, London and the north-west of England are among a number of UK regions where it, in the long-run, it is cheaper to rent than to buy a flat or a house. ADNFCR-1219-ID-18384041-ADNFCR

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