First-time buyers to benefit most from price corrections Published: 03/07/2008

According to the housing solutions provider Firstrung, first-time buyers will be the "major beneficiaries" of the house price corrections.

Paul Holmes, the firm's operations director, believes consumers making their first step on to the property ladder will find it easier in the months and years to come.

Though economic conditions remain uncertain and doomsayers are forecasting drastic falls in house prices, would-be homeowners will be the ultimate victors, he insists.

"This may not be the best time economically, it may not be the best time for job opportunities either... but as the market corrects, the future is very bright for first-time buyers," Mr Holmes said.

At present, the average initial purchaser is forking out around £20,000 to secure their first property, including the deposit, stamp duty and other associated costs, based on a valuation of £115,000.

The Firstrung expert believes houses for sale will become cheaper in the coming months, while mortgage availability eventually recovers, making it cheaper for house hunters to get on the ladder.

With an influx of new-builds, he predicts the average first-time buyer will be looking at a house worth £100,000, paying in the region of £15,000 to secure it.

"The major beneficiaries of a correction in house prices are first-time buyers and that has to be a good thing," he concluded.

Capital Economics statistics suggest that the average asking price in the UK could fall by as much as 35 per cent over the next three years.

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