Young Make Up Only 3% Off Property Buyers
Young first time buyers are turning their backs on the property market, with just 3pc of house sales last month made by those aged 18 to 30.
It marks a sharp decline from last August when 12pc of sales were made by novice buyers in the same age bracket, figures from the National Association of Estate Agents show.
The shift is attributed to rising property prices, which have effectively priced some young homebuyers out of the market.
Data from the Office for National Statistics found the average price paid by first time buyers passed the £200,000 mark for the first time.
Other factors, such as the tougher mortgage affordability tests that were introduced in April, has also been blamed for the dwindling numbers
Mark Hayward, managing director of the National Association of Estate Agents, said first time buyers are being squeezed out of the property market.
“Things are getting even tougher for first time buyers. Not only do you now need to stump up ridiculously large sums of money in terms of deposits and stamp duty to be able to get on the ladder, but new (mortgage) rules mean buyers will also have to prove they can easily afford repayments now and in the future,” said Mr Hayward.
The fall in house purchases comes despite efforts from the Government to offer a helping hand to young first time buyers through its Help to Buy scheme.