The number of first time buyer sales in October was at the highest level on record, according to the latest Housing Market Report from the National Association of Estate Agents (NAEA).
First Time Buyer Sales at Highest Level on Record
Last month, a third (32%) of total property sales were made to first time buyers – up by 9% on September and the highest number since records began 16 years ago in 2000.
The last time the number of first time buyer sales was at a similar level was in October last year, when 31% of sales were made to these purchasers.
The number of sales agreed per NAEA member branch stayed steady in October, at an average of nine.
The amount of properties available per branch in October was 43 – up by 7.5% on September and the highest number recorded since March this year.
In October, the average number of house hunters rose by a third (32%), from 333 to 440 registered per member branch. This is the highest level seen since February this year, when there were 463 prospective buyers on estate agents’ books.
The Managing Director of the NAEA, Mark Hayward, comments: “This month’s report paints a positive picture for the UK housing market. Our findings over the last few months indicated mild uncertainty immediately following Brexit and, last month, we even saw sales to first time buyers fall. After shrugging off the uncertainty, we have seen an increase in supply and a rise in the number of sales to first time buyers this month – proof the market is beginning to bounce back.
“Clearly what we need now though is a clear plan as to how the Government is going to tackle the chronic shortage of homes that we are facing. During the Autumn Statement, the Chancellor announced a boost to housebuilding, which is a start, but sadly nowhere near enough. We have high hopes for the Housing White Paper, as this will set the housing strategy and intent for this Government going forward.”
With first time buyer sales now at a record high, will landlords begin to see a slowdown in potential tenants? LandlordNews.co.uk will continue to keep you updated on tenant demand and the wider property market, and how this will affect you.