Homebuyer numbers hit record low as renting sector booms

26 2008
The number of Britons making enquiries regarding potential home purchases hit a record low in February, indicating that many are happy to stay in the rental sector for the time being, estate agents have reported.

This fall in buyer interest has been directly attributed to the global credit crunch hitting both the pockets and the confidence of would-be buyers and represents the lowest figure since the National Association of Estate Agents (NAEA) began its monthly survey of its members.

Furthermore, the professional body believes that confidence in the housing market may have reached its lowest point since the house-price crash of the early 1990s.

"The figures reported in February echo the current climate of confusion that is clouding the property market at present," stated the NAEA president Stewart Lilly.

"Invariably, the global credit crunch, especially the US situation, has had a knock-on effect, which coupled with consumer inflation, is placing continuing pressure onto the property market."

The survey also revealed that the number of first-time buyers over the month fell from a market share of 11.7 per cent from the previous level of 14.5 per cent as people stay in the rental sector to ride out the economic uncertainty.

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