New UK property market data released by Rightmove shows that there has been a significant drop in the levels of demand among people looking to buy a home for the first time, due to sharp rate rises.
The Rightmove figures show that demand among first-time homebuyers has fallen by over 20%, with the recent rises in average interest rates being cited as the reason for it. Rightmove is stating that these increases are leading those who wish to buy their first property to put those plans on hold, out of concern that they will not be able to keep up with mortgage repayments.
Demand among these buyers dropped by 21% during the first two weeks in October, in comparison with the same period for 2021. That is almost certainly due to prospective buyers waiting to see what happens with interest rates. However, it should be noted that it still left first-time buyer demand levels 24% above what they were back in 2019, prior to the pandemic.
There has also been a drop in levels of demand among other types of buyers. This fell 15% during that two-week period, in comparison with the same period last year, but remained 20% above that of the pre-COVID period of 2019.
Speaking to Financial Reporter, Tim Bannister from Rightmove said:
“What’s going to happen to house prices is understandably on the minds of many home-movers right now, especially following the market uncertainty after the government’s mini-budget.”
Advisors with a CeMAP qualification will also be watching to see what happens.
