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First-time buyers await cooler market

Despite analysts&#39 predictions of a continued rise in house prices, new research from the Yorkshire Bank warns that people should not rely on the property boom continuing at the same rate.

It says its latest quarterly Housebuyers Survey of 2,000 adults shows the market&#39s underlying value is starting to fall away and although it is not predicting a dramatic or sudden slowdown, a correction is inevitable.

It says market stability is being affected by a reluctance of first-time buyers to enter the market and bolstering it from the bottom-up.

Yorkshire&#39s new research reveals that 24 per cent of would-be first-time buyers wish they had bought a year ago as they are unlikely to be able to afford to buy a home in the near future.

Thirty per cent say they are planning to put buying their first home on hold until prices have cooled down.

Yorkshire Bank says it is not just first-time buyers who are feeling the effects of spiralling prices.

Owner-occupiers are facing the prospect of having to almost double their mortgage to move up the property ladder.

One in 10 say they feel they have missed the boat and will have to wait until the market cools to purchase a bigger house.

Chief operating officer Geoff Greer says: “We are not predicting something sudden or dramatic but an inevitable correction.

“While current confidence in house prices emerges at an all-time high, with 63 per cent of people anticipating the value of their home will increase over the next 12 months, people should not rely on the current property boom continuing at the same rate.”

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