Moving home advice: 2012 prospects are mixed for first time buyers

Despite government incentives to bring first time buyers back into the housing market, prospects for those buying a home for the first time are predicted to be mixed for 2012.

Selwyn Lim, director of Mouseprice, stated: "There is contradictory information out there in the marketplace.

"There are these government initiatives in place which will no doubt have a positive impact, but that needs to be set against a backdrop of the Eurozone crisis."

According to Mr Lim, if things go poorly in the Eurozone, the effect on the UK economy will drive up lending rates, which will once again price first time buyers out of the market.

In spite of government attempts to encourage prospective buyers to purchase new homes, Mr Lim also believes that first time buyers will not automatically go for newer properties, as they trade for a premium and are not always the best in terms of affordability.

The success of government attempts to get Britain building will depend greatly on the wider economic climate and how the UK responds to changing domestic and global situations.

Published by Jessica Shervin