House price predictions 'difficult'

While people looking to buy their first home may have been pleased to hear the news that house prices fell in the UK last month, one sector commentator has warned it is difficult to predict whether this will be a continuing trend.

Paul Collins, property editor of BuyAssocation.co.uk, said in some cases sellers may be continuing to be overly optimistic with their asking prices - which could put property out of the range of affordability for many buyers.

"Finance is the key for first-time buyers. Many may hang on until the back end of the year - not just for saving for a deposit, but also to see what mortgages do towards the end of the year," he explained.

As a result, many Britons are likely to find they still need a sizable deposit in order to successfully take their first steps on the property ladder.

With this in mind, consumers may wish to consider flats to rent in the London borough of Hackney such as Shoreditch or another part of the city while they save up some money with which to secure a mortgage.

The recent Halifax House Price Index revealed property prices fell by 1.5 per cent in February, however, the Land Registry stated that during the previous month prices rose in London, which may make renting a more affordable option.

Written by Chris Price

Published 8th March, 2010

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