Home sales slump hits first-time buyers
Friday, 25 November 2011 9:03 AM
Estate agents say their sales to first-time buyers slumped to the lowest level in nearly three years in October.
The latest market report from the National Association of Estate Agents (NAEA) shows that just 16 per cent of sales were to first-time buyers, down from 22 per cent in September.
December 2008, when first-time buyers made up just 10 per cent of the market, was the last time that the proportion of sales was lower.
The NAEA blames continuing problems in the mortgage market for the slump, with first-time buyers struggling to raise a deposit, and says the banks may need stronger incentives from the government to offer them the right deal.
In the market as a whole, the number of house hunters registering at estate agent branches fell slightly in October.
Overall sales remained steady at eight per branch and supply levels were also in line with September, with 72 homes available per branch.
NAEA president Wendy Evans-Scott said: "This week's housing strategy announcement from the government is welcome news for first-time buyers.
"But our latest figures show that despite reported increases in mortgage approvals by the larger UK banks over the course of 2011, there is still a lending barrier facing those entering the housing market for the first time."
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