Mortgage pain hits first-time buyers: Estate agents see 27% drop off in enquiries

First-time buyers are delaying home purchases following the Bank of England’s decision to raise its base rate to 4 per cent, adding to higher mortgage costs and reducing buyers’ spending power. The slowdown matters because first-time buyers account for four in 10 home sales, while weaker demand is leaving more properties unsold and putting pressure on sellers to price realistically.

Zoopla recorded 27 per cent fewer estate-agent enquiries from first-time buyers than in the same week last year, and agreed sales are 10.5 per cent lower. Homes for sale are up 9 per cent overall, including a 14 per cent rise in two-bedroom houses and a 13 per cent rise in homes below £200,000. In the South East, listings are up 12 per cent while agreed sales are down 16 per cent; northern regions have seen stronger annual price growth, despite sales remaining below last year’s levels.