Excess supply could open door for first time buyers

19-Oct-2007

A shortage of housing supply around the UK has been a major contributor to the rapid growth in house prices that has left many Britons unable to afford their own properties in recent years, but changing market conditions could now allow first time buyers to capitalise, according to the National Association of Estate Agents (NAEA).

The association's latest monthly survey has indicated that while the launch of Home information packs (Hips) for larger properties has resulted in a shortage of three and four-bedroom homes on the market, an absence of buyers has led to an excess of smaller homes.

Uncertain market conditions have meant that the average number of agreed sales per agent fell from 12 in August to 11 in September, with sellers advised to be realistic with regards to pricing.

The study also shows that buyers too are being more considerate, with the average sale time rising from 18.2 weeks in August to 19.1 last month.

"The good news for first time buyers is that with the current oversupply of one and two bedroom properties there is more choice at the lower end of the market, which can potentially be taken advantage of over the coming months," the NAEA report noted.

First time buyers' share of the market fell from 9.7 per cent to 8.8 per cent over the month, but NAEA president Stewart Lilly suggested that prices would remain stable in the future.

"There are certainly no signs of a market crash, as is being suggested by some," he advised.

Last month the Royal Institution of Chartered Surveyors (Rics) suggested that those able to get themselves a mortgage would find that property was now very much a buyers' market.

First time buyer numbers down but stability could return
http://www.firstrungnow.com/first-time-buyer-news/first-time-buyer-numbers-3545.aspx

Lower interest rates on the horizon for first time buyers
http://www.firstrungnow.com/first-time-buyer-news/lower-interest-rates-3547.aspx

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