First-time buyer sales in six-year high

A new report from the National Landlords Association of Estate Agents has revealed that the average number of sales made to first time buyers increased for the second consecutive month.

In fact, last month’s rise brought totals to their highest level in over six years.

Increases

During October, there was an average of nine sales secured per estate agent branch, with 31% of these sales made to first-time buyers. This was a rise from the 29% recorded in September. In August, just 20% of these transactions were to first-time purchasers.

‘It’s really promising that, for the second month running, the number of sales being made to FTBs has risen,’ noted Mark Hayward, managing director of the National Association of Estate Agents. ‘Competitive mortgage products and the increasing pressure of an interest rate rise could be encouraging first steppers to take the plunge, as well as the dwindling supply of rental housing stock-putting pressure on renters to buy.’[1]

Seasonal Shift

The supply of available housing rose in October before the traditional Christmas slowdown. The number of properties available to purchase per branch rose by 16% from 37 in September to 43 in October. However, demand for property dipped slightly from an average of 342 house-hunters per branch in September, to 336 last month.

First-time buyer sales in six-year high

Hayward noted, ‘although it is great to see supply growing and demand falling-albeit by just two per cent, we cannot rest in knowledge that the housing market is on the road to recovery. What we’re seeing is a seasonal uplift. Those selling their homes are keen to push through sales before Christmas, hence the uplift in properties entering the market-but with the average sale taking between nine and twelve weeks, it’s unlikely transaction will be pushed through before Christmas now. Buyers are holding off until January to kick off the New Year with a house-hunt.[1]

‘The only way we can attempt to repair the market is simply by building more houses. Osborne’s pledge last week to build 200,000 new and affordable starter homes-with a discount for those under the age of 40-and his promises to offer loans to small builders, reform the planning system and re-designate commercial land to build new homes are all a step in the right direction. But until it’s all put into motion and we see the walls of new properties going up, we’re not holding our breath,’ he concluded.[1]

[1]http://www.propertyreporter.co.uk/property/ftb-sales-at-six-year-high.html