Estate agents given hope as first-time buyer mortgages increase

Figures released by the Council of Mortgage Lenders have revealed a 15% increase in the number of loans given to first-time buyers in October compared to September this year, while the total amount of home loans were worth £5.5bn – a 10% rise in value.

Although analysts felt that the statistics did not indicate a shift in the market, some agreed that there were areas where there were signs of an improvement.

The chief economist at the Royal Institute of Chartered Surveyors (RICS) said that in areas of the south-west, south-east and West Midlands, an increasing number of buyers are "looking in the shop window". He explained that the return in buyer interest was not surprising given the declining house prices and low interest rates.

The National Association of Estate Agents also found a slight upturn in first-time buyers between September and October.

Yesterday's RICS survey of estate agents similarly found a minor increase in sales.

Worcester estate agent, Andrew Grant, said: "We sense that the 'bottom of the market may well have been reached because during the last two weeks the rate of cancelled sales has improved significantly, thus indicating a return of confidence."

Source: guardian.co.uk | Last updated: 10th December 2008

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