First-time buyers in decline

Friday, 18 December 2009 12:00

Numbers of first-time buyers making a move into the housing market has diminished to the lowest level in a year, it was revealed today.

In November only 19 per cent of registered buyers were first-timers despite this group representing 43 per cent of the market just six months ago.

The National Association of Estate Agents (NAEA) has blamed the sudden ending of the Stamp Duty holiday as one of the reason for the fall.

Chancellor Alistair Darling announced in his pre-budget speech that all properties below £125,000 would be exempt from one per cent stamp duty from the end of the year, instead of those valued at £175,000 and below as was previously the case.

Gary Smith, president of the NAEA, said: "Any tax holidays result in a distortion in the market and in the case of Stamp Duty needed to be carefully managed and phased out rather than falling off a cliff."

And he fears that because first-time buyers are often at the base of selling chains, the plummeting numbers could have a negative effect throughout the housing market.

However, the number of property sales in general remained steady in November, according to the NAEA's figures.

It recorded an average of eight sales per branch during November and the number of properties for sale increased slightly.

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