Dominic Agace, CEO M Winkworth Plc:

“First time buyers are unfortunately still struggling to get a foothold on the property ladder as high levels of deposits continue to penalise them.  The government’s £250m package to help 10,000 first-time buyers to purchase a new build home is a step in the right direction, although it needs to be widened to all property types. Furthermore, the government needs to concentrate on increased lending, rather than individual segments of the market. Until there are signs of sustained economic recovery, the banks are likely to continue to squeeze this end of the market.

The increase in stamp duty in the budget has been long heralded and is not a sufficient disincentive to slow progress in this sector of the market. Where finance availability is a secondary concern, the markets remain active. A steady increase in interest rates is likely to be absorbed by the prime markets which continue to hold up very well and to outperform the broader UK market, with ongoing upwards price pressure. We have noted a higher percentage of asking prices being achieved this year in central London than in the first quarter of 2010”.