FIRST-TIME buyers in the region could be priced out of the market by the end of the year, a senior economist has predicted.
Shane O'Riordain, general manager of group economics at the Halifax, said that bumper house price rises spreading across the country would expose new buyers to the problems faced in London and the South-East in the past.
Britain's biggest mortgage lender declared 2003 the Year of the North, with annual house prices rising by 33.7 per cent - more than twice the average UK rate of 15.4 per cent.
However, it is unlikely those rates can be sustained without first-time buyers.
In 2002, 526,300 buyers entered the market for the first time. But only 330,540 first-time buyers bought homes in the first 11 months of last year.
Mr O'Riordain said: "The number of first time buyers entering the housing market is at its lowest level since records began (in 1983).
"Traditionally, the problems first-time buyers have experienced trying to get on to the housing ladder have been confined to London and the South-East.
"As house prices outside these two regions continue to rise significantly, the first-time buyer problem will extend into all regions of the UK by the end of 2004."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article