Good news for first time buyers as house prices fall

28th July, 2005

House prices in July rose by only 2.6 per cent more than the same time the previous year, which is the lowest house price growth in nine years.

The last time house prices increased this slowly was back in 1996 says Nationwide, which should bring hope to first time buyers. Costs such as house insurance could also be lower as a result, helping more young people to get onto the property ladder.

The average property in the UK is now worth £158,348 - just £4,049 more than in July 2004 and with interest rates looking set to fall, property could further come down in proce.

Fionnuala Earley, Nationwide's group economist said that because house prices were rising more slowly than wage growth, and because prices were generally lower, more people would be able to afford to buy property.

First time buyers who think that now is a good time to buy should remember that home insurance is extremely important. It will protect homeowners from accidental damage to their homes and belongings. With all of the wet weather, homes are at risk of flooding, and home insurance will cover the building if needed

 

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