Nearly 30% of homes sold in February went to first-time buyers, new figures released today have revealed.
According to NAEA Propertymark, the professional body which represents estate agents, February saw first-time buyer sales rise to their highest year-on-year rate since February 2015.
And in just one month, from January to February, first-time buyer figures increased from 27% to 29%.
NAEA Propertymark is attributing the increase to the impact of stamp duty relief, the effects of which are now filtering though following its introduction in November 2017.
In the Autumn Budget the Government announced it was abolishing stamp duty on first time purchases up to the value of £300,000.
However, there are concerns that while first-time buyer numbers had gone up following the stamp duty changes, figures were not exactly buoyant.
Mark Hayward, chief executive of NAEA Propertymark, said: “Since the Chancellor cut stamp duty for first-time buyers, there have been a good level of sales to the group, but they haven’t rocketed.
“Our members have noticed first-time buyers holding off making purchases since the rule was introduced – typically outside of London – opting instead to save for longer to maximise the full stamp duty relief.
“This may be one reason why sales are up but not as high as we might expect. The other reason is that the cost of buying is still very high, and first-time buyers are still finding it difficult to save for their deposit.”
NAEA Propertymark’s February Housing Report also revealed the average number of sales agreed per branch had gone up from seven in January to eight in February.
Demand fell, however, in the month with the number of prospective house hunters falling by 16% over the month and 28% since last year.
The number of properties available also fell slightly. Meanwhile only four per cent of homes sold for more than the asking price, the figures showed.
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