The tide may be turning for perpetually downtrodden first time buyers…

Members of the National Association of Estate Agents (NAEA) reported that first time buyers once again improved their market share in December allowing further optimism to stoke this sector that is in need of a vital boost.

First time buyers continued to increase their share of the market with a substantial hike from 10.1% in November to 13.0% in December. This is the highest figure recorded for first timers since November 2006 when a 13.4% share was reported by NAEA agents.

The higher than average number of one and two bedroom properties coming onto the market to beat the 14th December HIPs roll out deadline certainly proved fruitful for first time buyers in the run up to Christmas.

Affordability a ‘pivotal concern’

With interest rates having decreased in December and prices reported to be falling in some key areas, first timers are now in a prime position to take advantage. However, the issue of affordability will continue to be a pivotal concern for this sector of the market throughout 2008.

NAEA President, Stewart Lilly, comments: “A particularly encouraging sign for December was the increase in first time buyer share of the market. They have been able to take advantage of lower prices in some areas and the influx of one and two bedroom properties specifically prior to the HIPs roll out.

“We hope this positive trend will continue into 2008. Another interest rate drop would be a very positive move for the struggling first time buyer group – and indeed for consumer confidence as a whole. While we expect the coming 12 months to be fairly uneventful in terms of prices, we hope that further rate cuts might restore a sense of optimism in the market.”