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 First-time buyers make a cautious comeback

There are tentative signs that first-time buyers are returning to the housing market, according to one of Britain's biggest mortgage banks.

In a trading update yesterday, Northern Rock also said it was comfortable with analysts' forecasts of a 12% rise in annual pre-tax profits to about £494m this year.

The bank's comments came on the day a report claimed house prices had fallen for the 15th month in a row. Northern Rock said indications that interest rates were likely to stay at current levels offered "a good degree of certainty to both prospective and current homeowners".


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