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Recession could benefit FTBs
14 July 2008
First-time-buyers with cash to spare could have more chance of getting on the property ladder during a recession, according to Fool.co.uk.
With a long recession looking increasingly likely, according to the British Chambers of Commerce, first-time-buyers who were previously priced out of the housing market could benefit from falling house prices.
David Kuo, head of personal finance at Fool.co.uk, said: "If we go into recession it means companies have to slash prices in order to drive up demand again and anybody that has got money put to one side will be able to take advantage of this."
While a possible recession may be good news for first-time-buyers, homeowners with debts could face the risk of repossession.
"It is a threat to people with huge amounts of debt and an opportunity for people who haven't got debt and have cash," said Mr Kuo.
According to the Council of Mortgage Lenders (CML), the average first-time buyer put down a deposit of 13 per cent in April, the highest level in three years.
