NAEA: First time buyer sales are at highest level in six years

First-time buyer sales hit a 6-year high in October to account for nearly a third (31%) of all sales, according to the National Association of Estate Agents’ October Housing Market Report.

In August just one five (20%) transactions involved first-time buyers, while that proportion rose to three in 10 (29%) in September.

The number of properties available at each NAEA member branch to buy increased by 16% from 37 in September to 43 in October.

Mark Hayward, Managing Director of the NAEA, said: "It's really promising that, for the second month running, the number of sales being made to first time buyers has risen.

"Competitive mortgage products and the increasing pressure of an interest rate rise could be encouraging first steppers to take the plunge, as well as the dwindling supply of rental housing stock – putting pressure on renters to buy."

He added: "Although it is great to see supply growing and demand falling – albeit by just 2%, we cannot rest in the knowledge that the housing market is on the ‘road to recovery'.

"What we're seeing is a seasonal uplift. Those selling their homes are keen to push through sales before Christmas, hence the uplift in properties entering the market – but with the average sale taking between nine and twelve weeks, it's unlikely transactions will be pushed through before Christmas now.

"Buyers are holding off until January to kick off the New Year with a house-hunt."