First-time house buyers in North in line for postive 2008

First time home-buyers should have a better chance to get their foot on the property ladder in 2008 than for years, it was predicted today.

Conditions for the North's first-timers promise to improve considerably in the first half of the year, according to the Royal Institution of Chartered Surveyors.

It said with interest rates expected to be cut by the Bank of England to 5% in the first half of the year, coupled with the fallback in local property prices in the last quarter of 2007, first time buyers will be better placed than for a number of years.

The RICS believes there is strong pent-up demand from first-timer buyers who have been waiting for an opportunity to get into the property market.

Tom McClelland, the RICS Northern Ireland housing spokesman, said: "Asking prices are adjusting to the new reality and this will allow first time buyers to enter the market at more affordable levels and transaction numbers will increase.

"The likely interest rate cuts and more realistic prices that we are now seeing, means that conditions for first time buyers will be significantly improved.

"Investor activity, which was at a peak early in 2007 is now greatly reduced and there is less competition for the purchase of properties in the sector of the market in which first time buyers are active."

The Bank of England has already signalled its determination to counter any threat to the economy from the liquidity squeeze by cutting interest rates.

The RICS expects base rates to be cut by half a percentage point in the coming months ending the squeeze on the first time buyers and providing the market with a timely boost.