House prices to fall

House prices are predicted to fall 20 per cent in two years, according to Firstrung.

The company has said that because of the 60 per cent reduction in the number of mortgages available, house prices are going to fall dramatically in the near future.

Paul Holmes, operations director at Firstrung, said: "I think first-time buyers are going to benefit hugely. You have first-time buyers who are flavour of the day from house builders who have over-developed massively and now have no customers and so the only people they can possibly look for are first-time buyers."

He added that if first-time buyers think that they have got a bargain then they should buy but if they have waited this long, "where''s the harm in sitting out the market a little bit longer".

Mr Holmes concluded that currently there is only one way for house prices to go and that is to "fall dramatically".

Firstrung specialises in delivering solutions to first-time buyers.

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