First-timers are squeezed out by ris­ing prices

Buckinghamshire Advertiser - - HOMES -

FIRST time buy­ers are be­ing squeezed fur ther out of the mar­ket, with house sales by this group down five per­cent­age points, a 20 per cent de­crease in the last month alone, ac­cord­ing to the Na­tional As­so­ci­a­tion of Es­tate Agents (NAEA).

The NAEA’s June Hous­ing Mar­ket Re­port shows that the num­ber of first time buy­ers dropped to 20 per cent, down from 25 per cent in May 2014 (a 5 per cent de­crease), the low­est level recorded since May 2013.

The first time buyer strug­gle is re­flected in the age of this month’s house buy­ers, as those aged 18 to 30 rep­re­sented just three per cent of all house sales in June, the low­est per­cent­age of young house buy­ers recorded by the NAEA to-date.

Nearly 80 per cent of NAEA mem­ber agents be­lieve the re­cent an­nounce­ment by the Bank of Eng­land gov­er­nor, Mark Car­ney, on the cap on high-risk mort­gages, which will see only 15 per cent of new mort­gages at 4.5 times a bor­rower’s in­come, will af­fect the num­ber of first-time buy­ers and home own­ers look­ing to move.

Mark Hay­ward, Man­ag­ing Direc­tor of the Na­tional As­so­ci­a­tion of Es­tate Agents, said: “Things are get­ting even tougher for first time buy­ers.

“Not only do you now need to stump up ridicu­lously large sums of money in terms of de­posits and stamp duty to be able to get on the lad­der, but new rules mean buy­ers will also have to prove they can eas­ily af­ford re­pay­ments now and in the fu­ture.

“Along­side this, a scal­ing back of the gov­ern­ments Help to Buy scheme and the im­ple­men­ta­tion of the MMRR in April will also have a sig­nif­i­cantly neg­a­tive im­pact on the first time buyer mar­ket.”

There is some good news in this month’s NAEA hous­ing re­por t, as June saw an in­crease in the av­er­age num­ber of proper ties avail­able per NAEA mem­ber branch.

vail­able proper ties in­creased to an av­er­age of 46 com­pared to 44 in May 2014.

The num­ber of proper ties avail­able per mem­ber branch is still his­tor­i­cally low, and has not reached above 50 per month since Novem­ber 2013, and above 60 since May 2013.

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