Sales to first-time buyers are at their highest level for six years after rising for the second month running, new figures show.
According to the National Association of Estate Agents, house sales to first time-buyers in October accounted for 31% of total sales, the highest since August 2009 and a jump of 11% percentage points in the last two months.
Ahead of the Christmas slowdown, the supply of available housing increased in October. The number of properties available to buy at each estate agent branch was up 16% from September to 43.
The number of house-hunters searching for properties dropped slightly from an average 342 house-hunters per branch in September, to 336 in October.
Mark Hayward, managing director of the National Association of Estate Agents, said competitive mortgage products, the dwindling supply of rental housing stock and the increasing pressure of an interest rate rise could be encouraging first-steppers to buy.
Hayward continued: “Although it is great to see supply growing and demand falling – albeit by just 2%, we cannot rest in the knowledge that the housing market is on the ‘road to recovery’. What we’re seeing is a seasonal uplift. Those selling their homes are keen to push through sales before Christmas, hence the uplift in properties entering the market – but with the average sale taking between nine and 12 weeks, it’s unlikely transactions will be pushed through before Christmas now. Buyers are holding off until January to kick off the New Year with a house-hunt.
“The only way we can attempt to repair the market is simply by building more houses. Osborne’s pledge last week to build 200,000 new and affordable starter homes – with a discount for those under the age of 40 – and his promises to offer loans to small builders, reform the planning system and re-designate commercial land to build new homes are all a step in the right direction. But until it’s all put into motion and we see the walls of new properties going up, we’re not holding our breath.”
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