Lower house prices ‘are best way to help first-time buyers’

Posted 18/02/2011

Residential conveyancing demand from first-time buyers could rise considerably if house prices fall naturally, one industry expert has implied.

Housing minister Grant Schapps recently hosted a discussion aimed at analysing the position of those looking to purchase a property for the first time, with the Council of Mortgage Lenders stating funding constraints is a major problem.

The organisation pointed out that gross lending in 2011 will be approximately £135 billion, compared to £360 billion at its peak.

Commenting on the summit, however, spokesman for PricedOut Matt Griffith said the event focused too much on lending by banks or the availability of more “risky” mortgages.

Instead, he suggested: “Rather than trying to prop up prices it would be better to let them fall and improve affordability in the simplest way. Lower house prices are the best way to help first-time buyers.”

This, he noted, would lead to banks lending more to first-time buyers.