First-time buyers demand rate cut

First-time buyers are seeking a cut in interest rates as a Christmas present from the Bank of England.

According to research from online property portal HotProperty.co.uk, one in four first-time buyers would rather receive a cut in interest rates early in the new year than the cash for a deposit in their first house.

Although the Bank of England cut rates by 0.25 per cent, to 5.5 per cent, last week, they still remain high – prohibitive to first-time buyers securing their place on the bottom rung of the housing ladder.

While 25 per cent sought a cut in interest rate cuts, some, 62 per cent still would prefer the cash in hand, indicating that that not all first-time buyers recognise the ongoing benefits of interest rate cuts.

Only 13 per cent of first-time buyers were keen to see a raise in stamp duty thresholds, which could save buyers thousands on the price of a new home.

"First-time buyers are crying out for help, with one in four prepared to pass up a cash in the hand deposit in favour of interest rate cuts," said Shawn Luetchens, managing director HotProperty.co.uk.

"However, the survey also highlights one of the main barriers for first-time buyers is affordability - in terms of being able to have the cash for a deposit - with 62 percent opting for cash over changes that could have much more impact in the long term.

"Although we in the industry often talk about interest rates and government regulations as major barriers, it is obvious that first-time buyers out there just want the cash in the hand."