Myintroducer.com have today reported on the latest NAEA Market Report, showing a dip in overall sales, during May, to first time buyers of 7 per cent. April’s report showed overall sales to first time buyers stood at 24 per cent but May’s figure dipped to just 17 per cent.
The last time such a decrease was reported was October 2011 when first time buyers accounted for just 16 per cent of overall sales. Before this date, the lowest figure recorded was in December 2008 when first time buyers accounted for just 10 per cent of the market.
Registered house hunters also decreased by around 20 per branch to 274 compared to April. Housing stock increased from 62 in April to 66 during May with sales across the property market remaining stable for the third consecutive month.
Commenting on the report NAEA President, Mark Hayward, said:
"Sadly, as the NAEA predicted, the Government’s removal of the crucial Stamp Duty Holiday for properties priced at £250,000 and under has hit the fragile first-time buyer market hard.
At what is a very turbulent time for the economy, both here and in the Eurozone, the major banks have introduced tighter mortgage restrictions and placed increased pressure on household finances, the Government should be doing all it can to stimulate housing market activity.
It remains to be seen what effect the £140bn emergency funding plan, announced jointly by the Treasury and Bank of England last month will have in encouraging banks to pass on cheaper mortgages to house hunters”.
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