15 Oct

First time buyer numbers falling

First time buyer numbers falling

Property purchases from first time buyers have fallen dramatically in the last two quarters, new research has revealed.

According to figures from price comparison site moneysupermarket.com, the number of first time buyers entering the market has fallen by 20 per cent since March.

This development can be attributed to a combination of current market conditions, such as five interest rate rises and rising property prices, the site claims.

Louise Cuming, head of mortgages at moneysupermarket, said: "It looks like the attrition of first-time buyers as they either move out of owner occupation or onto second time purchases is occurring at a much faster rate than new first-time buyers coming into the market.

"First-time buyers are the lifeblood of the housing market and provide essential liquidity, so the fact this segment is getting smaller is worrying for the economy as a whole."

The report also showed that home owners are opting for fixed rate deals in the face of uncertainty over interest rates.

The number of homeowners currently on fixed rate deals now stands at 43 per cent compared with 39 per cent in March.

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