Britain’s ‘affordability fears rising’

Money worries have seen fewer people opting to take out a mortgage in recent weeks and potential first-time buyers are among those being most commonly deterred from buying a house, Propertyfinder.com has revealed.

Part of the problem for those looking to get on the property ladder in the UK is the heightened interest rates they are likely to face, with the average costs associated with the first year of buying a property up £2,650 on 12 months ago, according to the new figures.

“It is no wonder first-time buyers are holding off purchasing property – increases in the cost of borrowing most dramatically affect those without capital already invested in bricks and mortar,” remarked Nicholas Leeming, director of Propertyfinder.com.

A report from the Consumer Credit Counselling Service last month suggested that debt management concerns would put homeowners on the financial rack for the duration of 2007.