Business · Economy · 1 hr ago
First-time buyer enquiries fall 27% as Bank of England raises rate
Estate agents have seen first-time buyer enquiries fall 27%.
The drop involves people looking to buy their first homes.
The Bank of England raised its base rate to 4% last week.
First-time buyers have put their moving plans on hold following the increase.
The rate rise came before buyers paused their plans.
The reported fall in enquiries shows fewer first-time buyers are currently making contact with estate agents.
No further developments are given.
First-time buyer enquiries for homes fell 27% in the week to November 8 compared with the same period a year earlier, Zoopla said.
The Bank of England raised its base rate from 3.75% to 4% last week.
Zoopla said the rate decision was making more buyers pause and wait.
Zoopla said there were more homes to choose from, particularly at the more affordable end of the market.
Propertymark said its agents continued to report steady registrations from prospective buyers overall.
- Who
- First-time buyers and the Bank of England.
- What
- Zoopla recorded a 27% annual fall in first-time buyer enquiries after the Bank raised its base rate to 4%.
- When
- The enquiries were recorded in the week to November 8. The rate rise was last week.
- Where
- The United Kingdom; the sources do not state a more specific location.
- Why
- Higher mortgage rates and the base rate rise may have led some buyers to pause their plans.
This story does not have two clearly opposing sides.
The Bank of England raised its base rate from 3.75% to 4%.
Zoopla recorded a 27% annual fall in first-time buyer enquiries.
- Enquiry decline
- 27% year-on-year
- Measurement period
- Week to November 8
- Base rate before rise
- 3.75%
- Base rate after rise
- 4%
- First-time buyer share of sales
- Four in 10 last year
2 sources
What people are saying
First-time buyers are the engine of the housing market, accounting for four in 10 sales last year.
The good news for those ready to move is that there are more homes to choose from, particularly at the more affordable end of the market.
This suggests that, while some buyers may be taking a more measured approach in the current climate, underlying interest in the housing market remains relatively consistent.