Number of sales to first timers still on the rise

Number of sales to first timers still on the rise

The number of people now able to get themselves onto the property ladder for the first time continues to grow in 2015, according to the results of a new study. 

Over the past few years, there have been concerns about the potential for young people to get themselves a home. However, the last year has proven to be surprisingly fruitful, and even as mortgage rules became tighter in the past 12 months, the volume of new buyers has risen. 

In March, the National Association of Estate Agents' (NAEA) April Housing Market Report showed that 22 per cent of all monthly sales were attributed to people who were purchasing a home for the first time. 

However, by the end of April, this figure had risen to 26 per cent of all sales as the number of newcomers to the market continued to increase month on month. 

"Whilst this month’s figures are positive and a step in the right direction, I’d like to think that with the help of 200,000 new starter homes and the Help to Buy ISA, first time buyers will be given even more help to get their foot on the ladder, however these things may take time to come to fruition," said NAEA chief executive Mark Hayward.

"The market is notoriously tough for first time buyers. House prices continue to increase and lenders have tight and restrictive lending criteria," he added, warning that although the past year has been good for new buyers, there could still be tougher times to come. 

Some 55 per cent of NAEA agents believe that in the next five years, the price of properties will continue to grow, with this reality squeezing the finances of young people and forcing many to rent rather than being able to afford a home of their own.