First-time buyer numbers down

The number of first-time buyers fell again in March, new figures have shown.

Statistics from the National Association of Estate Agents (NAEA) have revealed a drop in the market share of first-time buyers from 11.7 per cent in February to 8.3 per cent in March.

This compares with 12.6 per cent in March 2007 and is the lowest share of the market for this group since the 7.9 per cent recorded in April 2006.

In its report, the NAEA stated: "It seems that first-time buyers have really felt the impact of the credit crunch in March."

Many first-time buyers will feel unable to get on the market due to tighter mortgage criteria and higher deposits, something which may lead some to consider the self build alternative.

Earlier today the Council of Mortgage Lenders issued a joint statement alongside the government saying that the new Bank of England provision of £50 billion in securitised bonds to add liquidity to the mortgage market would have a positive effect "in due course", but did not say how long it expected that process to take.


© Adfero Ltd