First-time buyers welcome crash

By Peter Jackson
BBC News

The financial crisis might be a blessing for first-time buyers Praying for the house crash

House prices have fallen for 11 months in a row with lender Nationwide warning of "difficult" times ahead, but many first-time buyers are quietly counting their blessings.

The housing market slump offers thousands of young workers their best chance of ownership in years as homes become more and more affordable.

Many are not buying yet, but are more than happy to play a waiting game and try to call the bottom of the market.

In April, BBC News spoke to three young professionals who hoped a housing crash might get them a foot on the ladder.

How do their prospects look nearly six months on with the economy in disarray?

IZZY MIYAGHI, 34, FROM BIRMINGHAM

The community education outreach officer earns £28,000 a year and wants to buy a house for around £120,000. He lives with his family to save as much as possible for his deposit.

"My position is stronger, I've got more money saved up, house prices are falling and the market is getting better," he said.

"But it's not where I want it to be. I still don't believe I'm ready to buy a property for another nine months, especially because I think house prices are coming down further.

"I have sympathy for people who have a house, but I want to buy a house, I want to live.

"I'm living with the family. I need to save every penny I can - I can't even afford to rent."

SEBASTIAN CLARKE, 25, FROM ABERYSTWYTH, CEREDIGION

The IT systems adminstrator has been renting for seven years, earns £20,000 a year and hopes to buy a house with his fiancee for around £100,000.

"My situtation is better in terms of choice and it will get better as long as prices keep dropping," he said.

"I'm glad I didn't get into property a couple of years ago. I've got friends who bought then and are already into negative equity.

The IT administrator says he is playing a wait-and-see game

"I'm playing a wait and see game at the moment because I think prices will fall for some time.

"It would be a mistake to get something overvalued. Unless something jumps out at me, I'm not rushing into anything.

"Banks are getting a lot tighter, a 25% deposit is becoming more common now and it will take me a while to raise that."

HEIDI McFADDEN, 29, FROM COLCHESTER, ESSEX

The English teacher earns £30,000 a year and lives at home with her parents, paying them rent.

"In the long-term the crash is quite positive because I don't have a mortgage and I do have a small amount of savings," she said.

"I'd welcome a further drop in the market because it bears no relation to what people are earning and it should.

"I think I'll have to sit tight for at least another two or three years... if prices don't come down further we'll have to re-address our very attitudes to what a house is for."