According to official figures shared by the National Association of Estate Agents, the proportion of first time home buyers fell for the month of November to 19%, hitting the lowest figure recorded since over a year.
The 19% first time buyers' number for November is a 3% decline as compared to last month, and the lowest figure registered since November 2008.
The ongoing banking crisis, under which many lenders have started asking for higher deposit amounts, is being seen as the major driving force behind lower first time home sales.
President of the UK property sellers' body, Gary Smith is of the opinion that the decline could also be a result of "poorly-managed end to the stamp duty tax exemption scheme".
"Any tax holidays result in a distortion in the market and in the case of stamp duty need to be carefully managed and phased out rather than falling off a cliff. Unfortunately, as first-time buyers often form the foundation of selling chains, there could be repercussions across the market", said Mr. Smith.
Experts are expecting the low rate to lift within the coming year, as economic conditions stabilize.
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