NAEA claims a ‘nose-dive’ in first-time buyers as agents talk of big increase

Sharply contrasting views of the housing market have come from the NAEA and estate agents Reeds Rains and Your Move.

The latter, both owned by LSL, said that in November there were the most first-time buyer sales since August 2007.

The firms said there were 31,300 first-time buyer completions that month, up 23.7% annually and up 4.7% month on month.

However, the NAEA said that sales to first-time buyers “nose-dived” 10% in November.

The NAEA also reported that “lack of supply and growing demand for housing continued to drive the market into the ground”.

Mark Hayward, NAEA managing director, said: “It’s very normal at this time of year that demand is high and supply is low.

“However, supply is outweighing demand so heavily now that it can’t solely be attributed to seasonality.

“It’s clear that we’re faced with a crisis here.

“The housing market needs addressing as a matter of urgency.

“Our recent Housing 2025 report compiled with the Association of Residential Letting Agents and Centre for Economics and Business Research found that by 2025, house prices are set to rise by 50%.

“If we don’t act now, this will impact first-time buyers, second steppers and last steppers, forcing many out of home ownership.”

In contrast, Adrian Gill, director of Your Move and Reeds Rains, said: “First-time buyer numbers have enjoyed a strong 12 months.”

He went on: “There are a number of factors behind these solid figures.

“The effect of government stimulus packages such as the Help to Buy scheme is one factor, while the lure of lower interest, higher LTV lending is another.”

He said first-time buyers had also become increasingly cost-savvy and determined, and were doing more research into property and driving harder bargains.

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2 Comments

  1. Property Paddy

    I wonder if these statistics consider areas in the UK?

    I’m pretty sure you will find most FTB are city biased (cos that’s where the work is) or as close to a city as financially viable.

    So when we talk about building more homes, where do you suppose these homes need to be? In the middle of a market town miles from any where or somewhere between Reading and London?

    The problem isn’t building more homes it’s moving the employers away from over heated areas like London.

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    1. Kelly14

      Agree completely! Move the jobs and the people will follow. London is unsustainable.

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