18 December 2009

First-time buyers drop out of market

The proportion of first time buyers (FTBs) looking to put a foot on the property ladder has reached its lowest level for twelve months according to the National Association of Estate Agents (NAEA).

The monthly market survey of the NAEA members found that in November, only 19 per cent of registered buyers were FTBs, the lowest since December 2008 when levels plummeted to 11 per cent.

This figure pales in comparison to six months ago when 43 per cent of the market was made up of FTBs.

President of the NAEA Gary Smith said: “The decline in the first time buyer segment is exactly what the NAEA anticipated and warned the Government about some months ago.

“Any tax holidays result in a distortion in the market and in the case of Stamp Duty needed to carefully managed and phased out rather than falling of a cliff. Unfortunately as first time buyers often form the foundation of selling chains there could be repercussion throughout the sector.”

On a much more positive note, given the usually seasonal lull the number of sales remained steady in November with an average of eight sales made per branch. While the average number of properties available for sale per branch increased slightly from 57 in October to 58 in November.

Gary Smith added: “It is encouraging to see that the market is in a stronger and more stable position than it was twelve months ago. To sustain these improvements, the Government should put more pressure on banks to ensure lending is available."

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.

For further information contact:

NAEA PRESS OFFICE

Tel: 020 3128 8181

E-mail: press@nfoppmedia.com