Research from the National Association of Estate Agents released today (29 September) has shown the number of first-time buyers aged between 18 and 30 remains at an all-time low at just 3 per cent of recorded sales for August.
Sales made to those between 31 and 40-years-old were the highest recorded for the month, with almost half (45 per cent) being bought by those in this age bracket, the NAEA’s August Housing Market Report’s figures show.
The figures suggest the majority of first-time buyers fall into the latter group, with higher house prices pushing the younger generation out of the market.
The number of first-time buyers increased for the first time since April this year, from 20 per cent of sales in July to 28 per cent of sales in August.
Most buyers - 90 per cent - bought as couples, with just 7 per cent buying alone, the report found.
Despite the positive rise in the first-time buyer market, nearly 90 per cent of NAEA agents believe the looming rise in interest rates will affect the demand for property in some way.
Another 39 per cent of members are already claiming to see signs of demand dropping off.
Mark Hayward, managing director of the NAEA said: “Reports from our NAEA members suggest that the high house prices of the current housing market are still proving a barrier for the younger generation.
“It is evident that first time buyers are indeed getting older, with the majority of home buyers this month aged 31 to 40, suggesting some correlation between the increase in the FTB market and this age group.
“It is concerning at the lack of young people unable to buy their first home before the age of thirty, having to rent or stay at home for longer in order to save.”
“While the increase in first-time buyers is a positive, what could be a worry for home buyers is the prospective interest rate rise that’s on the horizon.
“If interest rates do rise, the majority of NAEA members agreed that this will affect the demand for property, as prospective buyers are discouraged by the cost of borrowing. In addition first time buyers need to be careful they can afford their mortgage, as interest rates could significantly push-up repayments, putting pressure on household budgets.”
