First time buyer enquiries plummet in July

The number of enquiries made by new buyers in July fell at the fastest pace seen since August 2004, according to the Royal Institution of Chartered Surveyors (Rics).

The Rics housing market survey for July also reported a slight increase in the number of surveyors reporting price increases as opposed to price drops, but this was against a background of tightening financial conditions.

Completed sales fell for the fourth consecutive month, while newly agreed sales fell at the fastest rate since November 2004, the study found.

"The combination of softening demand and supply is causing market conditions to weaken further," outlined Rics spokesman Jeremy Leaf.

Rics' figures were bolstered by similar data released today (August 14th) by the Council of Mortgage Lenders (CML), which reported that the number of first-time buyer borrowers fell by 4,200 year-on-year to 35,600 – the lowest June figure for three years.

However, the number was up slightly on May's 34,600 first-time buyer loans, the CML added.


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