First time buyers: new figures, new blog, new exhibition

Demand from first time buyers has hit a ten-month high, according to figures from the National Association of Estate Agents (NAEA).

The association found that the percentage of sales made to first time buyers increased from 23 per cent in February to 24 per cent in March (it last reached this level in May 2011). It also revealed that on average estate agents branches had 297 househunters registered per branch in March compared with 293 in February.

Sales levels were consistent with February, with branches selling seven properties on average. Anecdotal evidence from NAEA agents suggests that the increase in interest from first time buyers in the last weeks of the Stamp Duty Holiday helped to support this figure.

“As our member agents predicted, the termination of the Stamp Duty Holiday helped to fuel a last minute rush from people hoping to escape this tax on aspiration,” said Wendy Evans-Scott, President of the NAEA. ” It is clear that significant demand existed for this important tax break for those seeking to buy their first home. In light of these new figures, the Government’s decision to remove such vital financial support for what is an extremely fragile part of the housing market seems short-sighted.”

However the number of registered sellers fell slightly in March: the average branch had 61 properties on its books, compared to 63 in February. “The slight drop in reported supply levels suggests some caution amongst sellers, who were waiting until the full facts of the Budget were established and how that might affect house prices,” commented Evans-Scott continued. “In addition, the recent move by some major lenders to severely limit the availability of interest-only mortgages is no doubt dampening the levels of supply in the market.”

Meanwhile, first time buyers can take a browse around the First time Buyer Home Show on April 28 at the Grand Connaught Rooms in Covent Garden (10am – 5pm). It claims to be a one stop shop for all first time buyers needs and is free with exhibitors including private developers, affordable housing providers, solicitors, independent financial advisors, interior designers and estate agents.

Also worth having a look at is a new blog, The Homeowner Handbook which takes a personal look at various aspects of buying a new home, written by a couple who have done just that.

Useful web sites for more information

• Independent Property Search Engine
• Independent House & Home section

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• brit1664

   I just wish more first time buyers would spend longer looking at the economics of house buying.  Many are duped into scam schemes such as Newbuy, shared equity, shared ownership while others rush to beat the stamp duty deadline and pay more than they saved on stamp duty than if they waited till after the deadline.

  House prices will continue to fall in 2012.