First-time buyers urged not to rush into property purchase

First-time buyers are being urged not to try to take advantage of the current dip in the housing market by making a quick property purchase.

According to I Am Moving, young buyers should wait until prices have levelled out before trying to get on the first rung of the property ladder.

And with a number of buyers still priced out of the market the demand for rented accommodation is likely to remain steady in the meantime.

Peter Beckett, business development director of the company, claimed that a hasty purchase could lead to negative equity problems.

He said: "If you rush into something now, you could find yourself in a negative equity position, having borrowed in order to be able to afford to secure the property in the first place."

Mr Beckett added: "The mid-term implications of it are that things will slow down for first-time buyers until the market stabilises."

Meanwhile, according to moneysupermaket, the number of people opting to rent property has increased by five per cent over the last eight months.