Subscribe to The Money StopNews Feed

Browse > Home / News, News-Mortgages / 2008 will be a ‘double-edged sword’ for first-time buyers

2008 will be a ‘double-edged sword’ for first-time buyers

December 12, 2007 by admin  
Filed under News, News-Mortgages

Leave a Comment

Falling house prices and uncertain times will make next year a “double-edged sword”, according to the Council of Mortgage Lenders (CML).

Sue Anderson, head of external affairs at the CML, said: “On one hand, if the prices come down or even if they just stabilise, to a degree, that is good news for first time buyers.”

It is expected that consumers’ earnings will close the gap between that and house price inflation.

On the other hand consumers may “feel a bit wobbly in light of what has been going on in the market,” said Ms Anderson.

First-time buyers will be subject to confidence issues in relation to predicting behaviours in the housing markets, she concluded.

The Halifax House Price Index detailing the month of November stated that prices dropped by 1.1 per cent, yet prices are 6.3 per cent higher in annual terms.

Overall growth in house prices has slowed over recent months as the increase in interest rates between July 2006 and July 2007 has taken effect.

Tags: mortgage, time, increase, time buyers."It, loan, council of mortgage lenders, house, sue anderson

Tags:

Related Entries

  • Don’t be frivolous with your credit card
    • Credit cards are something of a double edged sword to most people. On one hand they are able to help people out of money problems, providing a financial lifeline and helping them when they have
  • First time buyers could benefit if banks were protected with insurance
    • For many first time buyers in the UK the dream of homeownership is one that has slipped from their grasp completely, with lenders either demanding huge deposits that first time buyers simply don't have or
  • Double dip recession could stem from house price falls
    • Officials from the Royal Institute of Chartered Surveyors have stated recently that concerns over a double dip recession have been sparked as a result of house price falls. Earlier in the week the majority of
  • Deposit levels could shoot up further for would be buyers
    • Until the end of 2007 the UK, along with many other nations, had enjoyed around a decade of easy credit, and for many the sudden financial restrictions that came into play with the onset of
  • House prices still set to fall in 2011
    • According to recent figures the property market in the UK did edge up a little over the course of 2010, and the average property price in December was up by around 0.4 percent compared to
  • Boost in saving predicted for 2008
    • The number of consumers saving money is expected to grow during the course of 2008 "in terms of the proportion of the money in society", claims one financial expert. Halifax said that the slow down
  • Smokers face double the life insurance premium
    • Smokers may be faced with life insurance premiums that are twice as high as those for non-smokers, says an expert.In particular, older people who smoke can expect a large reduction in the price of their
  • More Brits may face bankruptcy in 2008, warns Addidi
    • More people in the UK may face bankruptcy or be forced to arrange an IVA (Individual Voluntary Arrangement) this year, Addidi Wealth has said. The financial planning and wealth management service warns that the global

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!