26% of house sales were made to first time buyers in April, according to the National Association of Estate Agents (NAEA) April Housing Market Report.
Sales to first-time buyers rose from 22% in March to 26% of sales in April. However, when looking further ahead, 93% of NAEA agents do not see first-time buyers having substantial cut through in the market over the next five years.
Furthermore, 55% of member agents think that house prices will increase over the next five years, continuing to push first-time buyers out of the market.
The report also found that in the build up to the general election, demand in April remained similar to the previous month with 344 house hunters registered per branch (343 in March), whilst supply decreased from last month, with just 43 houses available per member branch (48 in March). In addition to this, 74% of NAEA member agents do not see supply and demand levelling out over the next five years, meaning that more buyers will be squeezed out of the market.
Mark Hayward, managing director of the National Association of Estate Agents (NAEA), said: “The market is notoriously tough for first time buyers; house prices continue to increase and lenders have tight and restrictive lending criteria. Whilst this month’s figures are positive and a step in the right direction, I’d like to think that with the help of 200,000 new starter homes and the Help to Buy ISA, FTBs will be given even more help to get their foot on the ladder; however these things may take time to come to fruition.”
