"The pressure on first-time buyers was eased this month, as record price rises began to stabilise across the country"
According to the figures, new Buyer demand for homes rose by 14.7% on the month, however, is still down annually by 26%. Additionally the number of properties coming onto the market has risen by 17.1% on the month, however is down by 11.4% on the year. This month there are 10 buyers chasing every property across England and Wales.
The market has become less efficient this month, as the number of transactions has decreased, however, the number of viewings has increased. Meaning that buyers are choosing to look at more properties before they buy.
The average purchase price for first-time buyers has dropped on the month by 4.8%, and 0.1% on the year. This comes as the number of first-time buyers entering the market has risen by a significant 18.3 on the month, however, is still down 29.6% on the year.
As average purchase prices drop, so does the the average amount first-time buyers are paying for their deposit had dropped 1.2% on the month, however have increased by 2.1% on the year.
The number of tenants entering the market has dropped this month, by 4.8% on the month, and 25.8% annually. Despite an increase in demand, rents have fallen by almost 1% on the month, as the average rent now sits at £1,292 across the UK. Demand in London has also increased by 11.9% on the month, however is down by 34% on the year. Rents have fallen by 1%, and the average rental price now sits at £1,796 across London.
The number of landlords registering to buy has risen this month, by 12.3% in England and wales, and by 17.1% in London, however, numbers are still down by 47.4% and 63.1% on the year respectively. The number of buy-to-let sales however fell by 4% in England and Wales, but rose by 17% in London. This comes as sale prices fell 4% across England and Wales and 3% in London. They are also down 11% on the year for England and Wales, but up 4.9% on the year in London.
Paul Smith, CEO of haart, comments: “The pressure on first-time buyers was eased this month, as record price rises began to stabilise across the country. This has led to a bounce of nearly 20% more first-time buyers registering interest in England and Wales and a massive 28% in London – a jump bigger than any we have seen in the last four years.
However despite this surge in activity in March, pulling together the money for both a deposit and stamp duty is still the biggest challenge for aspiring homeowners. This month Government data found that 60% of households occupied by millennials were rental properties, a complete reverse in the trend seen 20 years prior. Clearly there is still much work to be done.
All political parties should grasp the upcoming election as an opportunity to create a housing market that is fairer for all, encourage homeownership, as well as incentivise housebuilders to build family homes to free up sufficient stock. At the moment first-time buyers are seizing the opportunity to get on ladder wherever they can, because the Government has apparently run out of ideas.”
