Gradual thawing of icy conditions for first time buyers in 2008

Commenting on the Halifax report on first time buyers, RICS chief economist, Simon Rubinsohn said: "While first time buyers continue to struggle to access the housing market, the conditions should start to gradually thaw throughout 2008. However many are still struggling to raise the upfront costs of purchasing a property as banks remain reluctant to accept lower deposits. Those on lower quartile income would have to save almost 100 percent of their take home pay to have a chance of raising a deposit for the average priced house.

"However, there is huge pent up demand from first time buyers and should house prices drop in the early part of the year, many will be ready to pounce, especially if more repossessions filter through into the market."