First Time Buyer sales hit record high
The month of October saw 32% of all homes sold were to First Time Buyers according to findings from the National Association of Estate Agents. A nine percent rise from September and the highest number on record in 16 years. The last time figures reached anywhere near this high was in October last year where the industry saw 31% of sales made to this type of buyer.
Demand for housing also rose in October with the average number of buyers increasing from approximately 300 to 400 registering per member branch according to the NAEA. This figure is slowly creeping up to its pre Brexit levels of approximately 450 buyers registering per month.
Mark Hayward, Managing Director, National Association of Estate Agents (NAEA) comments on the findings: “Our findings over the last few months indicated mild uncertainty immediately following Brexit – and last month we even saw sales to First TimeBuyers fall. After shrugging off the uncertainty, we have seen an increase in supply and a rise in the number of sales to First Time Buyers this month – proof the market is beginning to bounce back.
“Clearly what we need now though is a clear plan as to how the Government is going to tackle the chronic shortage of homes that we are facing. During the Autumn Statement, the Chancellor announced a boost to house-building which is a start but sadly nowhere near enough. We have high hopes for the Housing White Paper as this will set the housing strategy and intent for this Government going forward.”
For the rental market in Birmingham however, the boost to creating more supply has already begun, with the announcement of a new government funding deal to build more than 300 apartments to rent in Birmingham City Centre. The funding is part of a support package of £400 million worth of developments across Birmingham, Manchester and Leeds, which will create approximately 2000 new homes in these cities. £45million of which will be donated via the new Government ‘Home Building’ scheme and will not only create more housing, but will also create over 1000 jobs across the project.
Housing and planning minister Gavin Barwell commented: "Alongside homeownership, we're determined to create a bigger, better private rental market to offer greater choice for tenants in a country that works for everyone.”
"This is one of the largest private rental sector deals in the UK and will not only create thousands of homes for people in Birmingham, Leeds and Manchester - it will create jobs and opportunities for many hundreds of people."