Increase in First Time Buyers

The National Association of Estate Agents has recently released figures which indicate that first time buyers may be returning to the housing market. With falling house prices at the lower end of the market, and a number of the larger lenders having recently reduced interest rates, many believe that now may be the time to buy.

Chris Brown, president of the NAEA, said: "Members have reported that the first time buyer market is slowly increasing with 11.8% shown as the percentage share of first time buyer sales in June. For first time buyers who have the adequate funds in place and can secure mortgages, now is a time they can operate as opportunists and take advantage of the market and the properties and prices currently available.

"However, it is clear from NAEA members that the last few months have been a difficult time for both the home buyer and seller. Consumer confidence is still low and this can be attributed to various economic factors including the continuing rising costs of living, the credit crunch and, of course, the shackles around the mortgage market.

"Confidence needs to be restored and this can be achieved if the government, Bank of England, mortgage lenders and various other bodies work together to ease the pressure. We are continuing to call on the government to cut stamp duty for first time buyers and move the threshold to give people a break. In addition, the Bank of England needs to ensure the mortgage markets are steadier. If consumers continue to find it hard to obtain mortgages how can the market place expect to move forward?"

This year has been a difficult time for all, with housing and mortgage transactions only a fraction of what they were at this time last year. However, the rise in sales shows that first time buyers have regained some confidence and have realised that they can use the current market to their advantage, as long as they have a big enough deposit to obtain a mortgage.

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