In the first quarter of 2009, 58% of Connells’ valuations were for first time buyers, up from 42% in the same period of 2008.
In the second quarter, first time buyers fell to 53% of all transactions, and by July, this had fallen to 46%.
Connells Survey & Valuation says the recent decline in the proportion of first time buyers comes against a backdrop of an overall increase in the number of house purchases. Home movers have increased their share from just 35% of mortgage valuations to 44% by July. There is heightened activity on the buy-to-let front too, where investors have increased from just one in 14 buyers earlier this year to one in 10 in July.
Ross Bowen, group mortgage director for Connells, said: “First-time buyers are having a hard time when it comes to obtaining finance but this hasn’t stopped them hunting for bargains. For first-timers house prices are cheaper than they have been for years