Resurgence in first-time buyers 'excellent news'

Date:Friday 6th November 2009
Author: Susanna Kavka

The boost in first-time buyers is excellent news for the housing sector, according to Trevor Kent, spokesperson for the National Association for Estate Agents.

As it is usually a new buyer who begins each chain, he said it is good news for the rest of the market.

Mr Kent urged caution, however, as while increasing numbers are viewing properties, this does not necessarily translate into sales as many get an nasty surprise when they speak to their lender.

He advised prospective buyers to speak to their mortgage lenders early on "because they may have an unpleasant shock about A, the interest rate and B, the amount of deposit they will be asked to put in".

There are, however, many new buyers who are rushing to purchase now in order to take advantage of the stamp duty break on homes valued at £175,000 or under, he added.

The comments were made by Mr Kent following the announcement by Winkworth estate agents that the number of enquiries by first-time buyers has risen to 32 per cent from the low of 19 per cent in 2008.