House price fall 'good for first time buyers'

A fall in house prices and the increase in the number of one and two bedroom flats being put on the market has given first time buyers more confidence in the market, according to a new report.

Research from the National Association of Estate Agents has shown that last month first time buyers increased their market share from 10.1 per cent to 13 per cent.

Although the news is good for first time buyers, prices are still far from affordable for the majority of them.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), said: "A lot of lenders have become more cautious both as to whom they''ll lend and how much they''re willing to lend. At the same time, arrangement fees - particularly for the best deals - have crept up, adding perhaps another couple of thousand pounds to the hefty deposit borrowers are likely to need."

He added that the result of this is that first time buyers struggle to get "the credit they need".

The RICS represents everything that is good in the property profession, according to its website.

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