First Time Buyer Figures Fall to Three-Year Low
The world of property marketing is today reacting to the news that the number of first time buyers has fallen to its lowest in three years.
A report from the National Association of Estate Agents (NAEA) reveals that only 16 out of every hundred sales completed in the UK in October involved a buyer purchasing their first home – the lowest proportion of first time buyers since 2009.
According to the NAEA Market Report for October, the number of first time buyers was down 6% on the previous month, when purchases of starter homes accounted for 22 out of every 100 sales – a level of slump not witness since December 2008.
Property Marketing Professionals Blame Lack of Finance Options
Property marketing professionals are blaming the slump on buyers’ inability to secure finance and the NAEA has called on the government to do more to ensure that people can find a way onto the property ladder.
President of the association, which represents the interests of property marketing professionals, Wendy Evan-Scott explained that the NAEA and its members welcomed the government’s announcement of its new housing strategy – which included possible steps to help first time buyers secure finance with the possibility of limited government underwriting on first time buyer finance – but added that many property marketing professionals were still seeing the effect of a “lending barrier” preventing first time buyers from securing a home.
“Government Should Extend Incentives” – NAEA
She said: “To address this government could ensure that banks are given clearer incentives to offer mortgage finance to the UK’s embattled first time buyers an also extend the mortgage guarantee for first time buyers announced this week beyond just new build homes.”