First-time buyers (FTBs) defied a tougher economic climate to make up half of all property purchases in July.
The proportion of FTB purchases during the month was 6 percentage points higher than the five-year average of 43 per cent, according to Connells Survey & Valuation.
Home movers made up 39 per cent of the market, while buy-to-let purchasers made up 12 per cent.
The rise in remortgaging puts it 10 percentage points higher than the five-year average for July.
Figures from NAEA Propertymark revealed a 30 per cent surge in FTBs helped to drive the market in June, and the latest data suggest the trend is continuing.
John Bagshaw, corporate services director of Connells Survey & Valuation, said: “Demand from first-time buyers is supporting the housing market at the moment. People are eager to get on the property ladder, with record high employment and competitive mortgage rates.
“But this doesn’t mean it’s an easy task to get a foothold in the market. Economic conditions are still tough. The increasing cost of living and house price inflation are making it harder to save for a deposit.
“House prices are around eight times higher than earnings – and they’re rising twice as fast. With the value of a typical property rising £10,000 in a year, first-time buyers still need help. Perhaps they could be given an exemption from stamp duty?”
simon.allin@ft.com
