Press Release Summary = The number of first-time buyers (FTBs) making enquiries about properties has plummeted.
Press Release Body = Figures from the Royal Institution of Chartered Surveyors (Rics) will come as extremely worrying news for home sellers.
They show that new-buyer enquiries in July declined at the fastest rate since August 2004 with rising interest rates being blamed.
The Bank of England has increased the base rate by 1.25 per cent in the last year, with the current rate of 5.75 per cent being the highest for six years.
In addition, Rics is reporting that surveyor confidence in sales has slumped to a negative figure for the first time in just under four and a half years.
\"The combination of softening demand and supply is causing market conditions to weaken further,\" said Rics spokesman Jeremy Leaf.
\"Buyer activity has pulled back a little over fears that we may have seen the top of the market.
\"With interest rates perched at 5.75 per cent and a jump to six per cent a strong possibility, aspiring first-time-buyers are continuing to rent until the market trend becomes clearer,\" he added.
Julian King of National Homebuyers advises FTBs to wait until the market settles.
\"We are in a time where property prices are up to 60 per cent over valued and interest rates are at an unacceptable high.
\"Buying now would be foolhardy.\"
National Homebuyers is the UK\'s leading fast purchase property firm, guaranteeing a quick sale for vendors who need to sell their house quick. The company has been dealing with an increasing amount of customers who are unable to sell their property on the open market because of the lack of buyers.
\"Traditionally FTBs account for 45-50 per cent of all property transactions. This is now more like 20-25 per cent,\" adds Mr King.
The Rics figures have been supported by similarly negative data recently released by the Council of Mortgage Lenders, which found that FTBs declined by 4,200 year-on-year in June.
Web Site = http://www.nationalhomebuyers.co.uk
Contact Details = Sterling House 20 Victoria Way Burgess Hill West Sussex RH15 9NF 0870 979 8118 Fax: 01444 257333 info@nationalhomebuyers.co.uk
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