The number of home buyers taking their first step onto the property ladder dropped by 1,300 between November and December, according to a new report.
The latest First-time Buyer Tracker from Your Move & Reeds Rains reported the reduced number was a result of the traditional winter cooling hitting the UK property market.
During December, the number of first-time buyers in the festive month fell to 26,600, a fall of 4.7 per cent against the previous month, when the figure reached 27,900.
However, over the course of 2015, first-time buyer activity grew steadily, with volumes up by more than 1 per cent – or 300 more first-time buyers per month – between December 2014 and December 2015, indicating a resurgence in first-time buyer confidence.
Adrian Gill, director of estate agents Your Move and Reeds Rains, said: “December’s first-time buyer market is once again suffering from the effects of the Christmas crunch.
“Most of those looking for their first home turn their attention – and their finances – towards an often very costly festive season.”
He said most people tend to put their home ownership ambitions on hold until the New Year, which is an inevitable part of the seasonal cycle that the property market goes through every year.
Monthly Transactions | Average Purchase Price | Average LTV | |
December 2015 | 26,600 | £152,470 | 83.4% |
November 2015 | 27,900 | £153,275 | 83.4% |
1 month change | -4.7% | -0.5% | +0.0 (from 83.4%) |
3 month change | -3.6% | -2.1% | +0.2 (from 83.2%) |
1 year change | 1.1% | 3.8% | +1.0 (from 82.4%) |
The cost of an average first-time buyer home fell on a monthly basis in December.
Between November and December, the average price at which a first-time buyer bought a house fell from £153,275 to £152,470, a reduction of 0.5 per cent, or £805.
However, over the course of the year, the average purchase price rose by 3.8 per cent, representing an increase of £5,518 between December 2014 and December 2015.
In addition, December saw a dip in the costs of getting on the ladder. The average deposit put down by a first-time buyer in December fell by 0.5 per cent – or £117 – on a month-on-month basis to stand at £25,292.
