Fewer buyers enter the market

Fewer people took out a first mortgage in September, according to the latest statistics.

Figures from the Royal Institution of Chartered Surveyors (Rics) show that less new buyers entered the market in the month compared to August.

A total of 51 per cent more chartered surveyors reported a fall rather than a rise in new buyer enquiries, compared with a figure of 39 per cent one month earlier.

It is the tenth month of decline and at the fastest pace seen since March 2003.

Rics says that a number of factors are preventing first time buyers from entering the market at the moment but also points out that some people see the current conditions as an opportunity.

"The combination of rising interest rates, the introduction of Hips and volatility in the financial markets resulting in tightening of lending criteria, has certainly affected the confidence of buyers and sellers," said Jeremy Leaf from the organisation.

"As a result, some would-be buyers are turning to the rental market whereas others, conscious that the next move in interest rates is now likely to be down rather than up and market meltdown is highly improbable, are seizing the opportunity to negotiate with more flexible vendors in a less competitive market-place," he added.

Rics also revealed that house prices fell in the month, echoing the figures released by Halifax earlier this month which showed that prices fell by 0.6 per cent in September.

Related Articles