First-time homebuyers wary

THE number of enquiries from first-time homebuyers has dropped by almost 25% as more people become wary of entering an uncertain housing market, a survey revealed today.

But the National Association of Estate Agents' monthly survey found that the number of property sales continues to rise, with 1.5% more houses sold than in May than in April.

The research, involving nearly 10,000 estate agents, found that the number of housebuyers on their books fell by 13.6% in May.

The number of first-time buyers as a percentage of total sales fell to 13%, down from 14% the previous month.

More than 75% of estate agents believed that further increases in interest rates would cause the housing market to plateau. 14% predicted a crash or more severe slowdown.

Richard Hair, President of the National Association of Estate Agents, said:' We are seeing a definite wariness among the public to commit to a market which they fear may be slowing.

'Nevertheless, the figures also show that sales and viewings are still strong, and futher price increases indicate that homebuyers are still willing to pay close to the asking price for the property they want. The Governor may be threatening a crash, but here at the frontline we are merely expecting a natural levelling out.'