Personal income worries deterring first-time buyers from property market

18/12/2009

The number of first-time buyers entering the UK property market has reached its lowest level for a year, newly-published figures show.

With many prospective home buyers still struggling with personal income worries and a majority of mortgage lenders reluctant to approve large loans, the National Association of Estate Agents (NAEA) has reported that just one in five buyers were new to the market last month.

This compares with the picture just six months ago when 43 per cent of all home purchases were made by first-time buyers and represents the lowest level of new entrants to the market since December 2008.

At the same time, however, the NAEA's latest statistics also show that the number of properties being put up for sale through the branches of its members has continued to pick up, suggesting many more people are getting their personal income worries in order and looking to make a move.

Commenting, association president Gary Smith noted: "It is encouraging to see that the market is in a stronger and more stable position than it was 12 months ago."

He added: "To sustain these improvements, the government should put more pressure on banks to ensure lending is available."

The NAEA figures come in the same week that the Financial Services Authority (FSA) has reported that November saw a five per cent year-on-year fall in home repossessions.

Tags; Income Worries and Debt,

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