The threat of a recession is actually an opportunity for
first time buyers looking to get on the property ladder, according to David Kuo, head of personal finance at money website Fool.co.uk.
An economic slowdown brings is good for anyone who has been "praying" for a housing recession, although he admitted it is a serious problem for those people who are in debt.
According to figures from the Council of Mortgage Lenders,
first time buyers in April typically took out loans that were 3.3 times their income, down from 3.35 in March.
As far as first-time buyers are concerned, Mr Kuo remarked, the best thing would be if house prices fell to a level that is affordable.
"There are a lot of people who have been on their knees praying for a housing recession because they have been waiting to get onto the housing market," he said.
According to the latest house price index from Nationwide Building Society, residential property prices slipped by 0.9 per cent in June but are still four per cent higher than two years ago.
See Also: Property News (6705)
Date Published: 15 July 2008
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