05 February 2009

First Time Buyers Finally Find Hope in the Housing Market

The proportion of first time buyers (FTBs) looking to put a foot on the property ladder more than doubled in the first two weeks of 2009, according to the NAEA. 22.5 per cent of registered buyers were FTBs, up from 10 per cent in December and 14.5 per cent in January 2008. Peter Bolton-King, CEO of the NAEA, said: “This figure is highly significant in terms of demonstrating an increase in consumer confidence. The NAEA views FTBs as the bedrock of a healthy housing market. “During the boom years we saw the number of FTBs as a proportion of buyers rise as high as 37 per cent, and I believe that an average of 25 per cent is indicative of a healthy and confident market." He added: “While the figure of 22.5 per cent is definitely not a sign that the housing sector is out of the woods yet, it does suggest that those infamous green shoots of recovery may not be as far off as first thought.” Figures from a national survey of the NAEA’s 14,000 members also demonstrate that second time buyers are determined to try to bag a bargain. Agents reported a flurry of activity in the first two weeks in January, with an average of ten new sellers per agent. Agents made an average of four sales in the first two weeks of January – compared to a monthly average of six in November and December 2008. 55 per cent of those looking to buy in the first two weeks of January came from this market segment. Buy to let investors made up 22 per cent of the market – indicating bricks and mortar remains a sound investment, particularly with interest rates falling. Peter Bolton-King said: “These statistics are evidence that consumer confidence is slowly being restored but I must counter this by saying that unless lenders respond to consumer demand, then any green shoots will wither and die on the branch.” ENDS

Editor Notes

Editor Notes: About the NAEA The National Association of Estate Agents (NAEA), the residential sales arm of the National Federation of Property Professionals (NFOPP), is the UK’s leading professional body for estate agency personnel, representing the interests of around 10,000 members who practice across all aspects of property services both in the UK and overseas. These include residential and commercial sales and lettings, property management, business transfer, auctioneering and land. The National Association of Estate Agents is dedicated to the goal of professionalism within all aspects of property, estate agency and land. Its aim is to reassure the general public that by appointing an NAEA member to represent them they will receive in return the highest level of integrity and service in both sales and lettings, for all property matters. Each NAEA member is bound by a vigorously enforced Code of Practice and adheres to professional Rules of Conduct. Failure to do so can result in heavy financial penalties and possible expulsion from the Association.

Contacts

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