London First Time Buyers Bide their Time

The current economic conditions means it is probably better for first time property buyers to rent rather than purchase, according to Ducalian.

Timothy Lambert, head of consulting at the company, noted that it is a "very uncertain time" for those trying to get on the property ladder.

"I would advise people new to property to be very cautious at this moment in time," he said.

"Make sure you are totally aware of what debt you are taking on. A two-year fixed-rate mortgage may look good now, but when this product comes to an end in two years' time the rate is likely to be much higher."

Mr Lambert pointed out that the monthly payment will not decrease any time soon, so first time buyers should ensure they can "easily afford" their mortgage repayments.

His comments come after research from Moneyfacts.co.uk revealed that the number of UK mortgage offers made available to applicants with small deposits has started to increase.

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