Winter 'may be a good time to buy property'

Wednesday, November 25th 2009

First-time buyers looking to get on the property ladder may want to consider doing so this winter, according to one expert.

Katie Tucker, technical manager for mortgageforce, explained that house prices tend to drop over the winter months - especially in November, December and January - before picking up again in time for spring.

The fact that mortgage lending is on the increase may also benefit new buyers, she added.

Recent figures from the British bankers' Association showed a 98 per cent year-on-year rise in new mortgage approvals for November.

However, Ms Tucker added: "The problem, of course, is a lot of [first-time buyers] have missed the boat on the stamp duty holiday, so I'm expecting a lull now."

The current zero per cent stamp duty rate on properties worth up to £175,000 will end on December 31st.

For homes worth between this amount and £250,000, the rate is one per cent, rising to three per cent for properties valued at between £250,000 and £500,000 and four per cent for those with a price tag of more than £500,000.