NAEA reports record proportion of first-time buyers purchased homes in October

First-time buyers made up the highest proportion of total house sales ever seen since records began 16 years ago in October, according to new figures from the National Association of Estate Agents.

Almost a third of total sales, 32%, came from first-time buyers, up 9% on September and the highest ever recorded, beating the 31% figures seen 12 months ago in October 2015.

The NAEA found that the slowing of house price increases following the Brexit vote has helped push the number of first-time buyers up. First-time buyers have also benefitted from record low interest rates and the return of the 100% mortgage from some lenders.

The Market Harborough Building Society this week launched its “family assistance mortgage” which users buyers’ parents homes as security and follows Barclays' 100 per cent "family springboard mortgage" which uses parents’ cash as security which has to be deposited with the bank.

Overall, the number of sales agreed in October was the same as September, averaging nine per branch out of an average of 43 properties available per estate agency branch.

This element of the data showed a 7.5% rise in properties available on September and the highest number on record since March this year.

Meanwhile, the number of house hunters per branch also went up sharply, by 32% from 333 to 440 registered per NAEA member branch, the highest level since February this year when the total was 463. This means there are now 10 potential buyers chasing each property for sale in the UK.

Mark Hayward, Managing Director, National Association of Estate Agents said: “This month’s report paints a positive picture for the market. Our findings over the last few months indicated mild uncertainty immediately following Brexit – and last month we even saw sales to FTBs fall. After shrugging off the uncertainty, we have seen an increase in supply and a rise in the number of sales to FTBS this month – proof the market is beginning to bounce back.”

However, Hayward warned that the government needs to come up with a plan on how to increase the number of homes being built and is pinning his hopes that this will be tackled in the forthcoming Housing White Paper.

Hayward said: “Clearly what we need now though is a clear plan as to how the Government is going to tackle the chronic shortage of homes that we are facing. During the Autumn Statement, the Chancellor announced a boost to house-building which is a start but sadly nowhere near enough. We have high hopes for the Housing White Paper as this will set the housing strategy and intent for this Government going forward.”