First-time buyer sales drop to six-month low

 

First-time buyer sales have dropped to a six-month low, according to new figures.

A report by The National Association of Estate Agents (NAEA) has revealed that first-time buyers accounted for just 17 per cent of house sales in May, which represents a huge drop from 24 per cent in April.

The figures indicate that many would-be home-owners are still struggling to get the foot on the housing ladder due to the poor economic climate. Many are likely to be residing in rental properties instead. The news could be pleasing to letting agents and landlords, who could become keener to invest in and advertise property for let.

In an interview with indpendent.co.uk, NAEA president Mark Hayward claimed that the end of the stamp duty holiday for properties under £250,000 has had a crucial effect on prospective first-time buyers.

He said: "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."

Myintroducer.com report that overall house sales have remained relatively stable. However, the proportion of homes being sold to first-time buyers hasn't been this low since October 2011, when it was at just 16 per cent.

Author: Properties ABC