propertytalk Live! - First-time buyer levels in Wales now below 1 in 5

propertytalk Live! - First-time buyer levels in Wales now below 1 in 5

Rightmove’ Q1 First-Time Buyer Report finds that the proportion of buyers intending to purchase for the first time over the year ahead in Wales stands at less than one-in-five.

Prospective first-time buyer levels dropped from 18.4% in the final quarter of 2010, to just 18.7% in Q1 2011. This is the second lowest figure Rightmove has ever recorded, just marginally above the 22.2% reported in Q3 of last year.

Rightmove also finds that mortgage challenges are the main factors supressing first-time buyer levels as more than half of respondents stated that their single biggest concern was a mortgage-related issue. Our survey found that 44% of first-time buyers cite ‘raising enough deposit’, and a further 10% ‘meeting monthly mortgage repayments’, as their principle housing concern. These are timely and concerning figures given the imminent mortgage lending summit called by the Government to look into the plight of first-time buyers.

Miles Shipside, director of Rightmove comments: “The level of first-time buyers dropping below one-in-five of all prospective buyers in Wales is a big concern for the property market. The desirable level of first-time buyers for a healthy market is typically around 40% of all buyers, almost double the current level, as they perform a vital function in completing chains and aiding fluidity throughout the housing ladder. These findings are likely to heighten government concerns about the scarcity of first-time buyers and it is imperative for the longterm health of the market that a solution to this issue is found.”

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