Sales to first-time buyers decline: NAEA

According to their July housing market report, published today (24 August), the number of house hunters rose 5 per cent in July to 462, compared to the previous month.

This is the highest recorded since August 2004, when an average 582 house-hunters were recorded per NAEA branch.

In contrast to June’s report, the amount of available housing grew by a quarter, from an average of 44 properties available per branch in June, to 55 in July. This represents the highest level of available housing in almost two years, when 57 houses on average were recorded in September 2013.

However, the number of sales made in July remained static from May and June, with just 9 per branch, indicating that although housing stock is starting to increase, it remains a struggle to complete a purchase.

The housing market report also revealed that the number of sales made to first-time buyers continued to fall in July, with the group now accounting for just 23 per cent sales.

This has fallen from 24 per cent in June and 29 per cent in May. However, it was an increase on July last year, when only 20 per cent of sales were made to this group.

Mark Hayward, managing director at the association, said it is “alarming” that the number of sales being made to first-time buyers is steadily falling, “with reports of house prices increasing and expectations of rising in the future, first time buyers will continue to be pushed out of the market”.

He noted however, that more housing coming on to the market means over the next few months there should be more activity in the market, to respond to the “growing army” of house hunters emerging over the last few months.

“The truth of the matter is though, there simply aren’t enough houses to meet growing demand, and until we see more physical bricks and mortar, there may be no hope in solving the housing crisis,” added Mr Hayward.