Property dives but first time home buyers think 'It's a good time to buy.'

Hopeful first-time home buyers think it is a good time to buy their first property despite prices falling 1.7pc in April. Around 57pc of people hoping to get on to the property ladder said they thought house prices would either stay the same or increase during the coming 12 months, while 69pc thought now was a good time to buy, even though the facts say otherwise.
One in five first-time buyers even said they thought it would be more difficult to buy their first home in a year's time, viewing the current market as a window of opportunity for people with a substantial deposit.
The group said the shortage of buyers able to get a mortgage and the increase in forced sellers meant that some first-time buyers had been able to purchase properties at 25pc less than their peak price.
The optimism comes as the Halifax said that house prices in Britain fell by a bigger-than-expected 1.7pc in April and by 17.7 pc in the three months to April compared with a year earlier.
Miles Shipside of Rightmove said: "It's a clear sign that the mood is swinging from negative to positive when first-time buyers are looking to re-enter the market. Canny investors have been snapping up some bargains, and now first-time buyers reckon prices are reaching a floor too."Some will be frustrated by the size of deposit that lenders are demanding to get the best mortgage deals, however.

The average first-time buyer questioned had £31,650 saved for a deposit, the
equivalent of around 20pc of the average house price in England and Wales.

The majority of lenders continue to require a 40pc deposit in order for borrowers to qualify for their best deals, and there is very little choice for people with only a 10pc down payment.However, competition in the mortgage market has been increasing in recent weeks for people looking to borrow 75pc or 80pc of their home's value.Mr Shipside urged lenders to take the plight of first-time buyers seriously and offer more loans to people with smaller deposits.

The British aspiration of property ownership remains high and
aspiring first-time buyers cannot be condemned to renting forever.

"We need to think about the long-term effects of the continuing mortgage famine and current lending policies." Around 62pc of first-time buyers are planning to buy a property with their partner, while 33pc are buying on their own and 5pc are buying with friends or family.
Six out of 10 people hoping to buy their first property are currently renting privately, with 30pc living with their parents and 6pc in council or local authority accommodation.
Four out of 10 potential first-time buyers said they would consider buying a property through a shared ownership scheme.