First time buyer market share falls further

21-Jun-2007

New figures from the National Association of Estate Agents (NAEA) have confirmed fears that rising interest rates and soaring house prices have forced yet more first time buyers out of the market.

Despite the number of properties available on the market in May rising to the highest recorded figure since December 2005, the number of buyers fell by 1.1 per cent, with first time buyers falling off in even greater numbers.

The number of first time buyers fell for the third month in a row, from 10.3 per cent in April to 8.9 per cent in May, the study revealed.

"I am alarmed that month after month the percentage of first time buyers in the market is dropping and we are now faced with the worrying figure of just 8.9 per cent of first time buyers in the marketplace. I continue to urge the government to start making more allowances for this struggling sector and would like to see more initiatives put in place so this figure does not continue to drop," advised NAEA president Stewart Lilly.

Buyers struggling to buy their first property were recently cautioned against the pitfalls of taking out a mortgage that stretched their finances to breaking point.

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