Highlights this quarter:

	Proportion of intending first-time buyers reaches highest level for 12 months at 26.2% Big jump in first-time buyers expecting house prices to increase - one in three now expect to pay more to buy a home over the next 12 months, up from one in five last quarter Raising a deposit remains the major issue with 44% of first-time buyers citing this as their single biggest property market concern

Rightmove’s quarterly survey of intending first-time buyers gives an early view of activity and sentiment at the very important base of the property ladder. The proportion of people that are intending to buy in the next 12 months that will be doing so for the first time is the highest we have recorded for four quarters, seemingly driven by the sense from a growing percentage of this group that property prices will be higher in a year’s time.

Miles Shipside, director of Rightmove, comments: “Despite prospective first-time buyers still being frustrated by deposit-hungry lenders and stifled by sellers unwilling to reduce their prices, this survey forecasts an upturn in their activity in the next 12 months. As they closely scour what’s available in their local markets, this is perhaps driven by their sense that the deals on properties to buy and mortgage funding criteria are not going to improve and so more have simply accepted these conditions and decided to act. Indeed, there is a large shift of opinion amongst would-be first time buyers that prices may well have bottomed out and could be higher in some areas in a year’s time.”

In this quarter’s survey, 26.2% of those that say they intend to buy within the next 12 months state that they will be buying for the first time. This is the highest figure we have recorded since Q2 2010, when the proportion was marginally bettered at 26.3% and is up on the 22.8% recorded in last quarter’s survey.

Download the full May 2011 First-Time Buyer report now, for all the latest regional facts and figures

2 Responses to “Prospective first-time buyer levels at their highest for 12 months as more call ‘bottom of the market’”

1. Ellen Says:
   May 23rd, 2011 at 1:18 pm

   There are so many people trying to talk up the market in the hope people will rush out and buy property. But getting blood from a stone has always been a problem. If estate agents and vendors priced interest rate increases into their asking prices there may be some hope of kick starting the market. Complaining about the banks not lending against the inflated valuations that are based on the current emergency rates we have now is very misguided.

2. Jules Says:
   August 16th, 2011 at 10:46 am

   Its understandable how people react to the new market flaws, everything being to ‘hyped’ by the agents and vendors wanted to sell to high. They know and we know that the price is too high but they keep insisting to sell at a higher price. Soon as they realise that the banks wont lend out high numbers and the vendors get into their heads that the economy is going upside down, they’ll realise their house isn’t worth that amount, they’ll lower the price, people will be able to put a mortgage down down, and live happily ever after…. until they lose their job and their house get repossesed. Think of the risk before a mortgage.

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