Propertymark has called on the Bank of England to cut interest rates to assist first-time buyers with purchasing their first home, and to ease the financial strains on homeowners in general.
The news comes as property website Zoopla found that people who are buying their first home are paying an average of £244,100 – this is £20,300 below the local market average.
According to the property website’s calculations, first-time buyers who stepped onto the property ladder in the fourth quarter 2023 are paying approximately £213 more per month on average on their mortgage in comparison to the fourth quarter of 2022.
FALL IN HOUSE PRICES
Nathan Emerson, PropertymarkNathan Emerson, Chief Executive at Propertymark, says: “A fall in house prices is necessary to ease the pressure on people’s finances so they can discover an affordable middle ground to keep the cogs of the property market moving.
“Since the Bank of England stated that inflation does not need to drop to two per cent before they cut interest rates, we remain hopeful that a reduction in interest rates can happen sooner rather than later to prevent any further strain on homeowners and allow more first-time buyers the opportunity to step onto the property ladder.”
