House price decline could benefit cash-rich buyers

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House price decline could benefit cash-rich buyers

Wed 23rd Apr 2008

Buyers with enough cash for a healthy deposit could benefit from the current property market situation, according to the commercial director of RightMove.

Miles Shipside said: "It's a buyers' market, but only if that buyer is buying for cash or can put down a good deposit."

He made the comments following the website's recent report which indicated that asking prices dropped by 0.1 per cent in the four weeks to April.

Despite declining property prices in many areas, the credit crunch has also prompted mortgage providers to tighten their lending criteria and ask for higher deposits.

As a result, many first-time buyers are struggling to get onto the property ladder. Conversely, some buy-to-let investors and established homeowners may find themselves in a strong position.

The lack of availability of finance for first-time buyers is also pushing up demand in the rental sector in some parts of the UK, which again could be good news for buy-to-let investors.

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