Rays of hope for property market

By Sarah O'Grady
Posted: 2009/04/27

HOME owners had a double-dose of good news yesterday as new figures suggested confidence in the property market is rising while house price falls are slowing down.

More people believe values will be higher in 12 months than at any time since December 2007, according to propertyfinder.com.

And prices fell at their slowest rate for more than a year during April as potential buyers continued to return to the market, reported property group Hometrack.

But both Nicholas Leeming, of propertyfinder. com and Richard Donnell, Hometrack's director of research, warned of the importance of first-time buyers to the market.

Mr Leeming said: "The crucial first time buyer market is still feeling the pinch much more than other buyers."

Mr Donnell added: "In the rush to seek out the green shoots of recovery, the importance of first-time buyers in driving the market is often underestimated."

First-time buyers made up 21 per cent of propertyfinder's survey, the largest share so far this year.

But they were the least optimistic on house prices, and only 13 per cent of first-time buyers thought mortgage costs are now more affordable.