15
Oct
First time buyer numbers falling
Property purchases from first time buyers have fallen dramatically
in the last two quarters, new research has revealed.
According to figures from price comparison site
moneysupermarket.com, the number of first time buyers entering the
market has fallen by 20 per cent since March.
This development can be attributed to a combination of current
market conditions, such as five interest rate rises and rising
property prices, the site claims.
Louise Cuming, head of mortgages at moneysupermarket, said: "It
looks like the attrition of first-time buyers as they either move
out of owner occupation or onto second time purchases is occurring
at a much faster rate than new first-time buyers coming into the
market.
"First-time buyers are the lifeblood of the housing market and
provide essential liquidity, so the fact this segment is getting
smaller is worrying for the economy as a whole."
The report also showed that home owners are opting for fixed rate
deals in the face of uncertainty over interest rates.
The number of homeowners currently on fixed rate deals now stands
at 43 per cent compared with 39 per cent in March.
