The number of sales to first time buyers decreased to its lowest level in seven months during May, according to research from The National Association of Estate Agents’ (NAEA) market report for May, which shows that just 17 per cent of overall sales made during the month went to those buying their first home, compared with 24 per cent in April 2012.
This is the biggest slump recorded by the NAEA in over half a year – October 2011 was the last time agents reported such a decrease, when FTBs made up just 16 per cent of the market share. Prior to that, the figure has not been as low for over three years at the height of the financial crisis in December 2008 when FTBs stood at 10 per cent of the market.
The number of house hunters registering at branches across the country also decreased, with 274 per branch in May compared with 294 in April.
Sales remained stable across the property market for a third consecutive month in May, with an average of seven per branch. However, supply levels were bolstered during the month with an average 66 houses available, up from 62 in April.
“Sadly, as the NAEA predicted, the Government’s removal of the crucial Stamp Duty Holiday for properties priced at £250,000 and under has hit the fragile first time buyer market hard,” says NAEA President Mark Hayward (left).
“At what is a very turbulent time for the economy both here and in the Eurozone, which has prompted tighter mortgage restrictions from the major banks and placed increased pressure on household finances, the Government should be doing all it can to stimulate housing market activity.
“It remains to be seen what effect the £140bn emergency funding plan, announced jointly by the Treasury and Bank of England last month will have in encouraging banks to pass on cheaper mortgages to househunters.”
- AUGUST 19TH 2012
- ZAC LLOYD
