House prices rises "a disaster" for first-time buyers

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House prices rises "a disaster" for first-time buyers

Fri 23rd May 2008

The meteoric house price rises of the last decade may have been briefly beneficial to some, but they were detrimental overall for both the UK economy and society, a property expert has claimed.

Paul Holmes, chief executive of Firstrung, stated that it had been "a disaster to wipe out the next generation of potential high-earning individuals".

However, he did acknowledge that for "selfish reasons" some people had welcomed the housing boom, as it offered "transient wealth for a short period of time".

Although house price rises have increased sharply over the last ten years, they now appear to be slowing. Nationwide's house price index for April recorded a fall for the sixth consecutive month.

Meanwhile, a recent report from Firstrung found that 23 per cent of 24 to 34-year-olds are worried about negative equity.

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