The price of properties purchased by first-time buyers fell by 10.2% to £164,500 in August from the month before, haart’s National Housing Market Monitor has found.
The estate agents’ data found the number of new properties for sale across England and Wales fell by 7.6% month-on-month, while there were 13.9% fewer transactions than a year ago in what represented a quieter month.
Paul Smith, chief executive of haart, said: “First-time buyers benefited from falling prices in August, as the housing market reached the low of the summer slowdown.
“Transactions across the board still remain 14% down on where they were a year ago – however I sincerely believe we have reached the bottom of the market.
“Prices are still rising, but at a slower pace than inflation, and now that unemployment has reached a record low it’s only a matter of time before interest rates climb back up again. The savvy buyer will act now before prices begin to rise at a faster pace.
“With nine buyers chasing every instruction across the UK, 15 across London, and as we are seeing almost 100% of asking prices achieved across many of our London branches, it is impossible to deny that the demand to buy is there.”
Smith felt more government focus needs to be on housing.
He added: “Housing has been a bottom of the pile priority for government ministers for too many months whilst the ins and outs of Brexit are debated.
“Now, in the midst of a housing crisis, is hardly the time to take a step back on housing policy. We need to see real reform to make real change on the ground now.”