The price of the average home dropped 0.5% in January, with prices dropping by 3.4% over the year, according to the latest data from estate agent Haart.
Its analysis suggested the average house price now sits at £228,313.
While new buyer demand jumped by 11.2% in January, it is still down by 3.1% on the same point last year. What’s more, the number of properties coming onto the market has dropped by 2.3% since December, and has fallen by a whopping 18% on the same time in 2016.
The number of viewings has jumped by 5.3% from December, though it remains down by 8% year-on-year. Sales numbers have dropped by 11.1% on a monthly basis, and 6.2% on an annual basis, according to Haart.
However, the estate agent was keen to emphasise that the prospects for first-time buyers have improved significantly, with the number of first-time buyers entering the market up by 16.4% since December, and by 10% on an annual basis.
Indeed, first-time buyers now account for more than a third of the mortgages written (36.7%) according to the firm, with an average purchase price for these buyers of £183,506.
Nonetheless, first-time buyers are getting older – in January the average age stood at 33, up from 31.8 in January last year.
Paul Smith, CEO of haart, the UK’s largest independent estate agent, said first-time buyers jumped at the Government’s move to cut stamp duty and have come back to the market “in a big way”.
He added: “The stamp duty cut, combined with stable house prices and mortgage rates that remain historically low saw a boost in activity. Overall January saw 11% more buyers registering with branches, and viewings jumped up by 5.
“It certainly seems as if the Government is putting housebuilding at the heart of its agenda at the moment. It is moving away from the political back and forth, and getting in on with the business of building. This should result in a meaningful increase in stock over the coming months and years, moving the market full speed ahead.”
