First time buyer numbers down again

The number of first time buyers getting a foot on the property ladder fell for the ninth month in a row in August, according to the Royal Institution of Chartered Surveyors (Rics), indicating that affordability pressures are continuing to tighten.

The drop off in demand also contributed to prices falling slightly, Rics said, with 1.8 per cent more surveyors reporting a fall as opposed to a rise in prices over the month.

This compares with a 10.8 per cent increase seen in July, the organisation added.

"Potential house buyers have become far more cautious as they wait and see what affect interest rate rises will have on household finances," commented Rics spokesperson Ian Perry.

"The market will soften further, going into the autumn, reducing some impetus from those that have been chasing a rapidly moving target," Mr Perry added.

However, this opinion contrasts with that of Haart estate agency, which believes that first time buyer numbers are set to rise again in the next few months.


© Adfero Ltd