Pessimism reigns among first-time buyers

Average house prices in the UK are leading many first-time buyers to believe that they are unlikely to ever be able to purchase a home, an expert has said.

In comments that may have implications for DIY house selling, chief executive officer at Firstrung Paul Holmes explained that the prospect of buying a property seems too far away for the majority.

"[House prices] are still significantly overpriced when we look at what the average earnings are in this country. You are looking at five times joint average income," he explained.

Mr Holmes stressed that for people to become less pessimistic, the average cost of property needs to come down to around £100,000, which is unlikely to happen any time soon.

Recent statistics from Santander revealed that the average first-time buyer saves up a 17 per cent deposit on a property before even attempting to get a mortgage.

Published on: May 23, 2011

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