First-time buyers capitalised on a sharp drop in overall housing demand in December, according to new data from NAEA Propertymark.
The trade body for estate agents reported that overall demand for housing slumped in the month, with 268 prospective home owners registered per member estate agency branch, down from 333 in November. That’s a fall of 20%.
Perhaps unsurprisingly, the number of agreed sales fell too, down to an average of five per branch, the lowest figure seen since December 2014.
However, it appears that first-time buyers took advantage of the lower levels of competition, making up almost a third (32%) of all sales. This is the highest figure seen since September 2016 and a significant jump from the 27% in November.
According to the NAEA there was only a slight change in the supply levels of homes in December, with the average number on sale per branch dropping by one to 33. This is however down by a fifth on the previous December.
There was only a small change in the time taken for sales to go through as well, with 4% of sales going through in under four weeks, compared to an average of 1% from January to November.
Mark Hayward, chief executive of NAEA Propertymark, explained that it wasn’t unusual to see buyers take a back seat in December in order to enjoy the festivities.
He added: “What we don’t usually see is first-time buyers capitalising on this slump and using it to their advantage – 44% of our members think that the Chancellor’s stamp duty cut for first-time buyers will encourage more to make offers, and looks like that’s what we’re starting to see.
“Hopefully this enthusiasm won’t falter when the second and third time buyers come back onto the market in the new year and competition hots up again.”
