First Time Buyers Drop Out of the Market

The number of first time buyers entering the property market is at its lowest level for twelve months according to the latest research.

First-Time Buyers – Mortgage News – House Price Latest

The monthly market survey from the National Association of Estate Agents (NAEA) found that in November, only 19 per cent of registered buyers were First-Time-Buyers, the lowest since December 2008 when levels plummeted to 11 per cent.

This figure pales in comparison to six months ago when 43 per cent of the market was made up of first-time buyers.

‘The decline in the first time buyer segment is exactly what the NAEA anticipated and warned the Government about some months ago,” said President of the NAEA Gary Smith.

‘Any tax holidays result in a distortion in the market and in the case of Stamp Duty needed to be carefully managed and phased out rather than falling off a cliff. Unfortunately as first time buyers often form the foundation of selling chains there could be repercussions throughout the sector.’

The number of sales remained steady in November however, with an average of eight sales made per branch of estate agents in the UK. While the average number of properties available for sale per branch increased slightly from 57 in October to 58 in November.

Data released by Nationwide found that house prices rose by 0.5% in November, 2009, the same rate as in October. Year-on-year house price inflation increased from 2.0% to 2.7%.

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