Fewer first-time buyers are actively looking to buy property at the moment, with new figures revealing a 55% drop in offers this quarter compared to the corresponding period last year.
New market data from estate agency software provider Alto, based on activity across around 6,000 UK estate agents using its product, reveals a sharp downturn in FTB demand since the government’s 1 April stamp duty changes, reducing the tax-free threshold from £425,000 to £300,000.
A nationwide poll of 250 agents – also by Alto – lays bare the the impact of that change:
+ 41% have seen a drop in new first-time buyer registrations
+ 47% say buyers are “more cautious”, with fewer offers being made
+ 18% report a fall in FTB viewings
+ 1 in 5 say buyers are viewing 6+ properties before offering – a sign of growing indecision
+ Two-bed houses remain the most in-demand FTB property, typically priced £201k–£300k
While FTB registrations surged over 70% quarter-on-quarter in Q1 2024 – likely to beat the changes -that momentum quickly fizzled. By Q1 2025, offers had plummeted 55% year-on-year.
Now, over half (56%) of agents are calling on the Government to step in. Their wishlist includes:
Stamp duty relief up to £500,000
5% deposit mortgage schemes for renters
Higher LTV mortgage options
More accessible financial education for young buyers
Cheaper starter homes
Tougher taxes on investors, to level the playing field
Alto’s data shows FTBs now account for less than 20% of viewings – underlining the struggle to convert interest into action. In response, some agents are shifting focus to more active segments – including second-steppers and landlords – to keep deals flowing, according to Alto CEO, Riccardo Iannucci-Dawson.
“This data should be a wake-up call for policymakers,” he added.
But there are signs that first-time buyer activity could improve in the near-term.
Read the orginal article: https://propertyindustryeye.com/first-time-buyers-now-account-for-less-than-20-of-property-viewings/
