FTBs are back
With all this seesawing of property prices and the ‘will it, won't it' market improvement and decline forecasting, it seems that first time buyers (FTBs) have decided that it is safe to venture back into the water - according to new research from the National Association of Estate Agents, FTBs are flocking back to the market...
The NAEA has reported that the number of first time househunters registered with them last month was at its highest level since September 2007 – which was the market peak. An average of 300 UK househunters registered in May, hoping to pick up a property whilst prices remain lower than they have been in years.
The pick up in interest from potential buyers continued to translate into sales during the month, with estate agents selling an average of 10.4 homes each, the highest level since October 2007 and the fifth consecutive monthly rise. As demand is outstripping supply – with the number of properties available at estate agents falling to 69 in May from 76 the previous month – it is no surprise that buyers are eager to get in first. A recent report revealed that there were four house hunters for each property on the market.
The NAEA noted that first time buyers were especially in evidence – the proportion of homes sold to first-time buyers surged to 43 per cent in May, up from the 23 per cent seen in April – a level not seen since September 2001.
The NAEA said these figures suggest that people want to buy now, before house prices begin to rise again.
First-time buyers are often described as being the lifeblood of the property market, as a shortage of people buying homes at the bottom of the housing ladder makes it difficult for other buyers to trade up. Gary Smith, President of the NAEA, said, “This is really good news for the housing market and the UK economy in general.”
A survey carried out for the Building Societies Association echoes the NAEA‘s research after it was established that 59 per cent of people said they believe now is a good time to buy a property. The survey found that almost half of people questioned think house prices will increase in the next year, while 12 per cent think that they will stay the same.