Propertyfinder.com indicated that the proportion of FTBs in the market had reduced to 22 per cent in March, as a result of rising interest rates and house prices.
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The research also showed confidence in the wider market was beginning to wane, with buyers’ offers at the lowest level since July 2006.
The study indicated that buyers were offering an average of 2.30 per cent asking prices, bringing the balance between buyer and seller sentiment further into line.
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Commenting on the findings Nicholas Leeming, director at Propertyfinder.com, said: “It is no wonder FTBs are holding off purchasing property – increases in the cost of borrowing most dramatically affect those without capital already invested in bricks and mortar.
“Demand at the bottom end of the market is calming, and there are signs that the rest of the market is following.”
The Department for Communities and Local Government (DCLG) in its own report into the market revealed that the average price paid by FTBs across the UK reached £156,031 in February, with UK house price inflation for FTBs also increasing, from 10.6 per cent in January to 12.5 per cent. The DCLG report also indicated a 0.50 per cent in property prices for FTBs between January and February, compared to fall of 1.2 per cent during the same period in 2006.
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Looking at the data, David Stubbs, senior economist at the Royal institute of Chartered Surveyors, commented: “The housing market clearly has strong momentum with buoyant economic conditions keeping housing demand high and supply limited, despite the effects of the three Bank of England Base Rate increases since August.”
