Declining house prices could be "good news" for first-time buyers, according to a leading industry body.
The Council of Mortgage Lenders (CML) said that if house prices fall then first-time buyers should be in a position to close the gap between earnings and mortgage payments.
But because first-time buyers are often the most vulnerable to problems in the market, declining consumer confidence may act as a deterrent.
Sue Anderson, head of external affairs at the CML, said: "One way or another, first-time buyers can at least breathe a sigh of relief that we are probably not going to be seeing house prices getting further out of reach.
"But whether that means they will take a wait and see approach, or whether they decide that is it the right moment to enter the market is more difficult for us to gauge right now."
Halifax has predicted zero per cent growth in the housing market in 2008, following a 179 per cent increase over the past decade.
See Also: Property News (6705)
Date Published: 11 December 2007
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