Recession virgins in house-price fear

Almost a quarter (23%) of 24-34 year-old homeowners are worried about experiencing negative equity as a result of falling property values in 2008, according to research by leading independent personal finance website Fool.co.uk.

And one sixth (16%) of Brits, who have no experience of a previous recession, admit to having their estate agent on speed dial, living in fear that their property price may plummet even further. These ‘recession virgins' have made regular enquiries about the value of their home over the last three months.

Staying-put

Over half (56%) of respondents are planning to sit tight in their current home in the hope of riding out the ‘credit crunch' and a further one in eight (13%) have actually cancelled plans to move until the property market calms and the situation becomes clearer.

Optimistic first-timer buyers

Mortgage lending speculation has clearly not turned off an eighth (13%) of recession virgins who hadn't previously planned to buy a property and are now considering doing so if prices continue to fall.

David Kuo, Head of Personal Finance at Fool.co.uk, says: "Young people who have not experienced previous recessions are understandably worried about the property market. They include both those who have just bought their first house and those who want to get on the ladder, but whose hopes are being dashed by over-cautious lenders.

"It is important to provide as much assistance to first-time buyers because they are the lifeblood of a healthy property market. So Fool.co.uk is calling on the Government to abolish stamp duty for first-time buyers for properties up to £190,000.

"It is not unreasonable for the nil-rate band to be lifted to £190,000 given that the threshold for stamp duty was £60,000 in 1993. Had this been raised in line with house-price inflation, the nil-rate band should start at £190,000 today for everyone.

"The Government should not be seen to be making capital from first-time buyers at a time when they are struggling. The Government has a hole to plug in its finances, but picking the pockets of first-time buyers is not the right way to go about it."