First-time buyer sales increase but properties are selling for less

The proportion of sales made to first-time buyers hit a high in June, agents claim.

Data from the NAEA Propertymark June Housing Report show that 30% of sales during the month by members were to first-time buyers, the highest proportion since January.

The number of sales per branch also increased slightly between May and June from ten to 11, but more homes are now selling below asking price, with the proportion rising from 77% to 79% over the month.

Only 2% of properties sold for more than asking price, members said.

Looking at demand, the number of house hunters registered per estate agent branch increased from 350 to 384 over the same period. This is also a 16% increase from June 2016 when 330 potential buyers were registered per branch, the report said.

However, while demand has increased, supply dropped from 40 properties per branch in May to 37 in June.

Mark Hayward, chief executive at NAEA Propertymark, said: “In May, we saw a period of political uncertainty, with new buyers stalling their house search until after the election. In June, however, it seems the market has bounced back, with the number of house hunters rising.

“Although we have seen a decrease in the number of houses available per branch, we have seen a rise in the number of sales – which is typical of this time of year as buyers and sellers push through their property transactions ahead of the quieter summer months.”

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