First-time buyer market in decline

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by Kay Murchie

According to the National Association of Estate Agents (NAEA), the number of first-time buyers in the UK property market fell significantly in March 2008.

The trade body’s latest report established that first-time buyers accounted for 11.7% of all property purchases in February, this had fallen 3.4% to just 8.3% in March - this represents the lowest figure since April 2006, when 7.9% was noted.

The fall reflects the uncertainty surrounding the UK property currently as house prices continue to fall and a slump in mortgage lending was announced by the British Bankers Association.

Stewart Lilly of the NAEA said the global credit crunch, squeeze on mortgage approvals and the media cloud that currently surrounds the property market are undoubtedly having effect on individual’s decisions to buy or sell.

There is a constant need to remind people that the underlying factors that hold-up the property market, low unemployment, historically low interest rates and a pent-up demand for houses still exist, added Mr Lilly.

In fact, a number of NAEA agents from across the UK are still reporting stable property markets with many of their branches making steady sales, continued Mr Lilly.

There are indications that first-time buyers have dropped their market share once again showing a wait and see attitude has been adopted. Over the next few months it is imperative that the shackles are released on the mortgage market so consumer confidence can be rebuilt, allowing the market to stabilise, concluded Mr Lilly.