Poll 'puts off first-time buyers'

A third of first-time buyers think prices in their area are still rising

A quarter of would-be first-time buyers have shelved plans to buy property until after the 5 May general election, research suggests.

Uncertainty ahead of the poll reflected their nerves about entering the property market, said Yorkshire Bank.

In January, 41% thought 2005 would be a good time to buy because of stagnating house prices, the bank said.

However, this figure has now dropped to 31%, while 18% would risk offering significantly under the asking price.

Homeowners 'positive'

The research took a sample of more than 2,000 people nationwide during March 2005.

It also suggested that more than one in three first-time buyers are aware of reports of falling house prices but, at least in their area, felt that they still appear to be rising.

And it discovered 24% of existing homeowners thought the market was strong enough to hold out for the full asking price on their property.

The number of existing owners expecting to see higher prices had risen from 46% in January to 54%, while those forecasting falls dropped by a third, from 12% to 8%.

"With house prices now at such historically high levels, it is perfectly understandable that first-time buyers are particularly sensitive to anything that creates greater uncertainty, such as the general election," said Gary Lumby, head of retail at Yorkshire Bank.

"That will be over in a few weeks, of course, and so maybe then first-time buyers will begin to share in the more positive outlook for the housing market in 2005."