It is somewhat too simplistic to say that First Time Buyers will be the biggest winners in the drop in property prices. While those people who have been priced out of the property market for their first home should soon be able to find price that are closer to their level of affordability, the contraction of the mortgage market in the UK makes it harder for them to get the necessary funds to make the purchase. In this sense, many First Time Buyers are finding themselves just as far away from being able to buy as they were at the heights of the property boom.

There will be effects for those First Time Buyers lucky enough to have a finance offer in place. In addition to the fact that prices across the board seem to be on their way down, there is an increased availability of properties for them to buy. In contrast to the situation just a few short months ago, there are now several properties on the market for every buyer, giving greater choice along with less of a need to compromise to get the right property at the right price.

In addition to this, the slowing-down of activity in the market will lead to less competition for the type of property young buyers want to buy. In the past, the small terraces or two-bedroom apartments that make the ideal starter home are also the same properties favoured by buy-to-let investors as the perfect rental investment. With ready capital and, more often than not, no need to rush to buy a property, investors found it easy to drive prices up just enough to make sure the First Time Buyers were seen off without too many problems.

The other logical consequence of the drop in prices for First Time Property Buyers is the fact that the sellers in the market will not only be ecstatic so see someone interested in buying their property, but they will be more prepared to do deals to secure the sale. Think about offering cash on top of the offer for white goods, carpets or even curtains. First Time Buyers are in a significantly better position to push for this kind of things as they have no chain to hold up the process - a considerable advantage in this inactive market.

Pauline Felward is an expert in the field of property, with expertise specialising in both property abroad and in the UK. Get more tips for first time buyers and get impartial advice from Pauline and other experts at buyassociation.co.uk

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