Half of prospective
first-time buyers believe the time has come for them to take their first step up the
property ladder.
However, one in four of these believe if they hold out a little bit longer,
property prices might fall, Abbey's latest
first-time buyer report reveals.
But
the mortgage lender warns that many first-time
buyers who believe this may be disappointed, as a recovery in the housing market is being predicted, meaning that the chances that house prices might drop significantly have been reduced,
Abbey suggests.
The bank's chief
economist, Barry Naisbitt, says Abbey would urge first-time buyers not to
buy because they are panicking.
"Any young people thinking of buying should try and save up as big a
deposit as possible to get the best start," according to Mr Naisbitt.
More than 90 per cent of potential first-time buyers plan on
saving money towards a deposit but are being held back by
credit card debt and outstanding
personal loans, the
mortgage lender found.
"Unless they are sure that their
personal debt is manageable, first-time buyers are not even starting from square one," Mr Naisbitt concludes.
