First time buyers hits record low

House sales to first-time buyers have fallen to a record low.

The proportion of first time buyers was 13 per cent in August, compared with the previous record low of 14 per cent in May and a temporary recovery
to 17 per cent in July, a survey of National Association of Estate Agent
members revealed.

And there are fears that things could get worse.

NAEA president Melfyn Williams said the acute shortage was threatening
to log- jam sales in progress higher up the value chain, adding:
“Without first-time buyers, the market could falter due to large chains of
agreed deals being unable to complete.”

NAEA members said they were not seeing firsttime buyers returning to
the housing market. Only seven per cent said they could see a “significant
uplift” in their numbers.

Mr Williams called on the Government and lenders to encourage first-time buyers back to the market.

“Abolishing stamp duty for first-time purchases would be a welcome step,” he said.

The fall in first-time buyers comes as the overall number of sales agreed per agent rose to 15, up from 11 in July.