Sales to first-time buyers (FTBs) surged by nearly a third in June as the property market bounced back from a period of political uncertainty.
The proportion of FTB sales was up 30 per cent on the previous month – the biggest rise since January, according to NAEA Propertymark’s June Housing Report.
The FTB surge helped to push the average number of sales agreed per estate agents branch from 10 in May to 11 in June.
Demand for housing grew by 10 per cent month-on-month as the average number of house hunters registered per branch climbed from 350 to 384.
But the number of properties available per branch fell from an average of 40 to 37 over the same period, indicating a widening gap between supply and demand.
Just two per cent of properties sold for more than the asking price in June - a decline of one percentage point from May.
The NAEA news follows a string of negative housing market data, with Halifax warning that residential price growth had reached its slowest pace in four years and PwC forecasting a significant market slowdown due to Brexit.
Mark Hayward, NAEA Propertymark chief executive, said: “In May, we saw a period of political uncertainty, with new buyers stalling their house search until after the election. In June however, it seems the market has bounced back, with the number of house hunters rising.
“Although we have seen a decrease in the number of houses available per branch, we have seen a rise in the number of sales – which is typical of this time of year as buyers and sellers push through their property transactions ahead of the quieter summer months.”
Kevin Dunn, mortgage and protection adviser at Furnley House in Leicester, said the firm had been doing a large amount of FTB business.
He continued: “There was a lull about four of five years ago where the lenders were not lending much, or there was really strict criteria and borrowers were in the mind that they had to raise a minimum of 10 per cent deposit.
“But even though the Help to Buy scheme has dropped off, most lenders now do fairly competitive deals at 95 per cent loan-to-value. The equity loan scheme helps as well.
“The easiest way to save money would be to live with mum and dad – but it is way more difficult for those people who are renting. If they are renting, it tends to be a gift or an inheritance that helps them to put down a deposit.”
simon.allin@ft.com
