First-time buyers will have both reasons to be cheerful and causes for concern in 2008, it has been claimed.

According to Sue Anderson, head of external affairs at the Council of Mortgage Lenders, first-time buyers will be buoyed by the fact that in 2008 house prices are set to fall, but may still feel financially stretched due to uncertain economic conditions.

As a result, they are likely to approach the new year with trepidation given that it represents a "double-edged sword".

"For first time buyers it is a bit of a double-edged sword really. On one hand, if the prices come down or even if they just stabilise, to a degree, that is good news for first time buyers, Ms Anderson commented.

"On the other hand, first time buyers are going to be a group who are probably as vulnerable, if not more vulnerable, than everyone else to confidence issues and expectations of what is going to happen. They may feel a bit wobbly in light of what has been going on in the market."

First-time buyers' most pressing concern will therefore be to judge whether it is best to buy now or adopt a wait-and-see approach, Ms Anderson said.

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