According to a recent report, despite record prices and economic challenges, first-time buyers are still entering the property market. The average price of property coming to market rose by just 0.2% (+£890) this month, with new sellers pricing cautiously to attract spring buyers. First-time buyer-type properties hit a new record price of £224,963, as buying still remains a compelling option in the face of record rents, for those who can overcome the mortgage and deposit hurdles. Although sales agreed numbers have now recovered to be in line with the pre-pandemic market of March 2019, the sales agreed are still 18% behind last year’s exceptional market, as we transition to a more normal level of sales activity. The first-time buyer sector (two bedrooms and fewer) leads the recovery with agreed sales now 4% higher than in March 2019, while the second-stepper sector remains 4% behind and the top-of-the-ladder sector 3% behind. Moreover, new sellers have shown pricing restraint this month, indicating a recognition of the economic headwinds and the need to transition to a slower pace of housing market activity. With the number of sales agreed back to pre-pandemic levels and homes selling 12 days faster on average than in 2019, buyers who see the right home for sale should not wait too long to make an enquiry. Finally, the average mortgage rates for first-time buyers have been falling over the last few weeks, with lender competition now strongest in the traditional first-time buyer loan-to-value ranges of 85% and 90%, which may encourage more buyers to take the leap now.
Agent’s Views “The beginning of the spring market has been a real turning point, after a difficult start to the year and following the turbulence of the last three months of 2022. Listing figures are comparable with last year, while viewing figures are down only slightly, which given the exceptional market of last year is quite remarkable. Our big focus currently, is helping our clients to understand the market conditions, which are changing so quickly. Available stock has now ‘normalised’ providing an increased choice of properties for buyers and our new and existing clients are having to respond by listing their homes at more competitive prices to stand out from the crowd. The great news is that both buyers and sellers appear to have adapted and accepted the current economic and property market conditions. There are now more attractive fixed rate mortgages available providing buyers with more confidence, and there has been a noticeable increase in sales activity.”
Karl Tatler, Managing Director at Karl Tatler Estate Agents
“We’re seeing locally that the number of new instructions and sales agreed is the highest it has been for several months, and while this is not the very high level they were during the pandemic years, they are high compared to before the pandemic. This upturn also suggests the economy is far stronger than expected and this is reflected in the buyer’s confidence in the market. We’re hoping these increased numbers will now become the new norm, which appears to be the case given the consistency of them this year.”
Ben Rose, Director at Ben Rose Estate Agents
