First Time Buyers Make Up 30% of All Sales
First time buyers, according to the National Association of Estate Agents' most recent Housing Market Report (July), now represent 30% of all buyers in the UK and sales to this group reached an 8-month high. Year-on-year, the rise was a considerable 23%.
A leading lender produced research claiming that first time buyers now pay an average of £208,741, some 21% more than the £172,659 paid in 2008, but they are older than a decade ago, with an average age of 31, two years older than a decade ago.
The lender's research also calculated that in London, the average first-time buyer property price has seen the greatest increase at 48% during the last 10 years to £419,608, followed by the South East with a rise of 37% to £275,632 and East Anglia up 30% to £210,639.
The NAEA also flagged up a 17% increase in housing supply, however demand fell to 303 potential buyers registered per branch, which was the lowest recorded number since December 2017.
And still, 75% of properties are being sold for less than asking price...go figure?
Mass exodus of London residents moving 'up north'?
Very recently a number of media reports claimed that London residents were leaving the capital in great numbers to buy larger properties in other regions, but particularly further to the north of England.
Figures from one large estate agent suggested that those leaving the capital and heading to the Midlands or to the North had risen from one in 17 in 2008 to one in five for the first half of 2018.
However, the estate agent's figures recorded a total of 30,280 Londoners leaving the capital. Given that London's total population is around 8.8 million, this is a tiny fraction. Additionally most Londoners move only as far as the home counties.
Andrew Boast, co-founder of SAM Conveyancing, said:
"London's sales volumes are currently plumbing the depths and there are additional headwinds of further base rate rises in the pipeline and continuing Brexit uncertainty.
"There are also signs that longer-term fixes, whether for new mortgages or remortgages, are increasing in popularity. This shows prudence on the part of borrowers but is also further evidence of a fearful housing market environment.
"It is to be hoped that the Government steers its Brexit negotiations with greater authority in the coming months so that all markets can become more certain in their decision-making.
"All housing market stakeholders should become increasingly realistic when pricing houses for sale, otherwise the number of occasions where lenders refuse to lend because they believe properties are overpriced is likely to rise, which will further erode confidence in the market."
* all figures quoted are the latest available from the Land Registry, the Bank of England and the Office for National Statistics unless otherwise stated.
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