First-time buyers are shunning the housing market due to rising interest rates, according to Propertyfinder.com.
Buyers’ offers are their lowest since last July, while the website says market confidence is fading on fears that respite from rate rises is just temporary.
In contrast, a year ago, one third of home buyers were getting on the housing ladder for the first time. That figure has fallen to 22 per cent.
Propertyfinder.com director Nicholas Leeming says: “It is no wonder first-time buyers are holding off purchasing property – increases in the cost of borrowing most dramatically affect those without capital already invested in bricks and mortar. A typical FTB today must pay £2,650 more in the first year in mortgage repayments and stamp duty than someone this time last year.
“Demand at the bottom end of the market is definitely calming, and there are signs that the rest of the market is following. As rates have risen, mortgage affordability has diminished and is preventing people from purchasing property.
“We seem to only now be experiencing the full effect of the MPC’s actions. Spring is traditionally the time of year when we see the most activity in the housing market and we would expect consumer sentiment and housing data to be at its most positive. Instead the picture is now less optimistic. The Bank of England has done enough and the housing market is most definitely slowing.”