First-time Buyers
First time buyers’ share of the housing market increased in June
First-time buyers clawed back a greater share of the housing market in June as rising interest rates deter other buyers.
According to figures provided by the National Association of Estate Agents (NAEA), first-time buyers now make up 10% of the market, up from 9% in May.
Stuart Lilly, president of the NAEA, said: “New developments and greater numbers of properties put up for sale by landlords withdrawing from the buy-to-let market have led to a greater supply of first-time buyer properties.”
However, the outlook was not so bright for other sectors of the market.
The average number of property hunters on estate agents’ books nationwide fell from 344 in May to 322 in June, while the number of properties for sale dropped by 6% that month.
More sales also fell through in June than in May, as 9% of all deals came to an end before the exchange of contracts.
Lilly said: “The situation has worsened for homemovers who have been reacting cautiously to mixed messages over the future likelihood of further rate rises.
“This, coupled with the summer period approaching, suggests there will be a quieter housing market over the next few months.”
However, others do not see so much of a cause for concern.
Nick Goble, spokesman for Winkworth estate agents, said: “There is a grave danger of overemphasising the significance of the current situation. We are still experiencing a strong property market with historically low interest rates.”