First time buyers 'to benefit from house price falls'

First time buyers in the UK are likely to be the "main beneficiaries" of corrections in house prices, according to an expert.

Paul Holmes, operations director of Firstrung, said that people looking to buy their first property are also facing "a very bright future" due to the fall in prices.

He added that first time buyers are expected to be in a good position as they are not looking to make profit on their home.

"The majority of first time buyers want to buy a house to call home: to live in, to pay off the debt over a 25 year period and to end up with something after it," he explained.

"If they can afford to buy that one property in a fair manner, in an equitable manner and buying that property with a mortgage equivalent to what they would have to pay for rent, then it becomes a very obvious and sensible decision to buy."

The Council of Mortgage Lenders recently revealed that the average first time buyer took out a home loan which was 3.3 times their income in April.

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