First-time buyers urged to wait for market conditions

First-time buyers should not try to jump onto the first rung of the property ladder because of the current sector downturn, experts have claimed.

According to I Am Moving, potential buyers should wait until the market has stabilised before making a purchase.

Peter Beckett, business development director of the company, revealed that first-time buyers rushing into a purchase could face negative equity.

"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," he said.

"The mid-term implications of it are that things will slow down for first-time buyers until the market stabilises," Mr Beckett added.

Meanwhile, research by I Am Moving has shown the methods first-time buyers use to buy property, with 42 per cent using savings as a deposit. Some 13 per cent have used a loan or credit card to pay a deposit.

UK Property News posted on 06/05/2008 10:47:02