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13/05/2009
Property market needs lower deposits to show floor, says expert |
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The level of deposits needed to purchase a property must decrease before the sector can bottom out, an expert has claimed.
Paul Holmes, chief executive officer of Firstrung, stated that many first-time buyers are holding off from entering the market until they are able to obtain mortgages that have "sensible" deposit levels.
He argued that it would be "crazy" for first-timers to buy a property in the current market conditions, as many lenders are asking for deposits of between 30 per cent and 40 per cent.
Those who have the means to meet such deposits may wish to consult a solicitor before making an acquisition.
Banks are asking for big deposits to "protect themselves" in the present economic climate, Mr Holmes remarked, adding that it could be "years" before many financial institutions return to solvency.
Mr Holmes' comments come after Rightmove's consumer confidence survey, which was released earlier this month, revealed that the majority (69 per cent) of first-time buyers think it is currently a good time to make a purchase.
Written by Laurence Smith |
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