It has been reported that first-time buyer sales have fallen to the lowest figures in seven months, with first time buyers only taking up 17% of property sales in May. In April, first-time buyers made up 24% of the market according to the National Association of Estate Agents (NAEA).
In October last year this figure slumped to 16%. However, before October, first-time buyer figures had not been this low for three years.
Estate agents have claimed that the reduced numbers of first-time buyers follows the withdrawal of the stamp duty exemption, meaning that many people are now unable to save enough money to begin the residential conveyancing process.
Mark Hayward, NAEA president, said, “Sadly, as the NAEA predicted, the Government’s removal of the crucial stamp duty holiday for properties priced at £250,000 and under has hit the fragile first-time buyer market hard.
“At what is a very turbulent time for the economy both here and in the eurozone, which has prompted tighter mortgage restrictions from the major banks and placed increased pressure on household finances, the Government should be doing all it can to stimulate housing market activity.”
The government launched the NewBuy scheme earlier this year in a bid to encourage first-time buyers to purchase new-build homes with a deposit as low as 5%. However, figures indicate that this scheme has yet to become as successful as the stamp duty exemption.
If you are buying a home, and you are searching for a conveyancing solicitor in London or elsewhere in the UK, a solicitor from Healys may be able to help you.