FTBs continue to struggle

First time buyers (FTBs) are still struggling to make it onto the property ladder but the "phenomenon" of price inflation appears to be over.

That is according to FirstRung, which anticipates seeing property prices fall by around one per cent each month for the next three years.

It may be good news for FTBs but the firm's chief executive officer, Paul Holmes, revealed that he does not believe it will be a smooth downward ride.

"One of the good things to come out towards the end of last year was that house price inflation, as a phenomenon, is over for this generation," he said.

"Unfortunately, we're still left in a position where last year first-time buyers watched prices go up on first-time buyer properties by an average of £19,000. [That] might not sound a lot, but it is, if you're looking to fund your first house with a margin of a three to 3.5 times mortgage.

"My best guestimate – and of course it's finger in the air for even the best economists on the planet – is that house prices will correct by a per cent a month over the next three years, so we'll see a 35 per cent correction in house prices. Unfortunately, that's not looking to be a smooth transition," continued Mr Holmes.

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