23-04-2008
First time buyer numbers on decline
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
In what may spell good news for buy-to-let mortgage holders, the National Association of Estate Agents (NAEA) has revealed that the number of people ready to buy their first home declined last month.
The latest market report from the NAEA shows that the percentage of homes among the current housing stock owned by first-time buyers (FTBs) dropped from 11.7 per cent in February to 8.3 per cent in March.
According to the association, this is the lowest FTB market share since April 2006, suggesting that many people are continuing to stay at home or rent until they are in a stronger position to take out a mortgage.
"The global credit crunch, squeeze on mortgage approvals and the media cloud that currently surrounds the property market are undoubtedly having an effect on individual's decisions to buy or sell," said Stewart Lilly, president of the NAEA.
Last week, NAEA chief executive Peter Bolton King sought to remind property professionals that strong economic factors underpin the current housing market.