Estate agents say first-time buyers are returning

A straw poll of UK Winkworth agents has revealed a rebound in the percentage of buyer enquiries coming from first-time buyers.

The poll revealed that, while first-time buyer numbers fell off a cliff last year, reducing by 55.8% to just 19% of all enquiries for 2008, that proportion has recovered to 32% of enquiries this year.

The recovery is all the more surprising given the ongoing difficulty first-time buyers face in securing mortgage finance, coupled with a recent report from the Financial Services Authority urging further crackdowns on the mortgage market.

It appears that first-time buyers are retuning to the market are eager to get onto the property ladder before prices, which have been increasing for at least four months, rise yet further.

The poll claims that many first-time buyers without the means or time to save the large deposits required by lenders these days are tapping up the bank of mum and dad for help in making their first property purchase.

Simon Waller, Sales Manager of Winkworth Shepherds Bush said:

"The majority of first-time buyers moving to the area have originated from family homes in the more expensive neighbouring areas of Ladbroke Grove, Kensington and Notting Hill. Mostly, these potential buyers are supported by cash from family investments and not their own savings."

Other first-time buyers have sat out the market in rented accommodation, giving themselves time to save for a deposit. Now the market appears to have bottomed out, they are in a good position to buy.

Josh Kravitz, Franchisee of Winkworth Tottenham, where 40% of buyers are now first-time buyers, said:

"There is a lot of demand at the moment and we have had a large increase in inquiries from first-time buyers this year. They are now confident that it’s the right time to buy and have had the time to save for a deposit. The problem now is that there is a shortage of stock which doesn’t meet the renewed demand."

First-time buyers coming back to the market have, in turn, started freeing up the chain and prompting more activity at the higher end of the property market.

Rachel Briggs, Sales Director at Winkworth Sheffield said:

"With increased interest from first-time buyers, the mid to upper end of the market can now start to move.

"There are many buyers looking to upsize on their first property and with the return of the first-time buyer they are now able to sell their existing property. When confidence and lending abilities improve for first-time buyers, even more people will be in a position to move."