Sales to first time buyers in UK reach highest level since 2000

Sales to first time buyers in the UK have increased strongly to their highest level since in 16 years, according to data from estate agents, suggesting the housing market is buoyant.

Some 32% of total sales made in October were to first time buyers, up 9% from the previous month and the highest since the National Association of Estate Agents (NAEA) began recording them in 2000.

The last time the number of sales to first time buyers was at a similar level was in October last year when 31% of sales were made to people buying their first home.

Overall, the number of sales agreed stayed the same in October, at an average of nine per branch and the number of properties available on average per branch in October was 43, up 7.5% from September and the highest number recorded since March this year.

Demand has also increased, the NAEA data shows. The average number of house hunters increased by 32% from 333 to 440 registered per member branch, the highest level recorded since February this year, when there were 463 prospective buyers on estate agents’ books.

‘This month’s report paints a positive picture for the UK housing market. Our findings over the last few months indicated mild uncertainty immediately following Brexit and last month we even saw sales to first time buyers fall,’ said Mark Hayward, NAEA managing director.

‘After shrugging off the uncertainty, we have seen an increase in supply and a rise in the number of sales to first time buyers this month, proof the market is beginning to bounce back,’ he pointed out.

‘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,’ he added.