The number of sales to first-time buyers nosedived in November as supply dipped and demand grew, new data has revealed.
According to monthly figures from the National Association of Estate Agents (NAEA), in November the percentage of sales made to first-time buyers fell by 10%. This comes after a promising period from July to October when the number of first-time buyer sales rose.
Overall sales were down by only 1%, which is typical for this time of year, the NAEA said.
Despite the Chancellor outlining plans to help first-time buyers get on the housing ladder in the Autumn Statement last year, over half (53%) of NAEA members think this group will continue to feel squeezed out of the market due to the lack of affordable housing.
The figures highlight the growing concern that the lack of supply and rising demand for property is helping to fuel the house price boom.
The NAEA said that the number of house-hunters grew by 20% in November while available stock fell.
In October, there were 336 house-hunters on average registered per branch, which rose to 403 in November.
Available housing decreased marginally in November, from 43 properties managed per branch to 41 – meaning there are now 10 prospective buyers fighting it out for every property.
Mark Hayward, managing director of the NAEA, said that despite the government’s plans to build 200,000 new starter homes more action was needed.
“It’s all very well planning to build houses, but we need to move to action and get and the bricks and mortar on the ground, if we’re to solve the crisis we’re faced with.
“It’s very normal at this time of year that demand is high and supply is low. House hunters hoping to find their dream property in the New Year have registered interest with agents, whilst those hoping to sell are holding off putting their properties on the market before January. However, supply is outweighing demand so heavily now that it can’t solely be attributed to seasonality.
“It’s clear that we’re faced with a crisis here. The housing market needs addressing as a matter of urgency. Our recent Housing 2025 report compiled with Association of Residential Letting Agents and Centre for Economics and Business Research found that by 2025, house prices are set to rise by 50% – and if we don’t act now, this will impact first-time buyers, second steppers and last steppers, forcing many out of home ownership.”
