Doubts over first time buyer demand

30-Aug-2007

House prices rose in August but the number of enquiries made by new buyers has fallen significantly, Nationwide has reported.

The lender's monthly house price index has revealed that monthly house price growth rose to 0.6 per cent this month, up from July's rise of just 0.1 per cent.

However, the annualised rate of growth fell from 9.9 per cent to 9.6 per cent, the study added, with average house prices now standing at £183,898.

"There are now clearer signs of slower demand in the market reflected in the collapse in new buyer enquiries," commented Fionnuala Earley, chief economist at Nationwide.

"In addition, the stock-to-sales ratio, which leads house price inflation by five to seven months, predicts a continued slowing in the annual rate of house price inflation," Ms Earley added.

The building society added that it was sticking to its prediction of growth of around five to eight per cent in 2007.

The average age of a first time buyer is now 34, it was reported last month.

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