House prices and the housing market are hopeful to get a boost from the influx of first time buyers.  First time buyers have returned to the housing market more confident to buy with a possible stamp duty holiday available for those purchasing their first property and at a level below £25,000.  According to data released from Hometrack the numbers of buyers are at a level not seen in the housing market since the beginning of the economic crisis.

Hometrack data revealed there was an increase in the number of possible buyers registering with estate agents.  There was an increase of 18.1 per cent in February.  This is higher than the 15 per cent increase in hopeful buyers recorded in February 2009 and falls below the higher level of 23 per cent that was recorded in February 2007.

The stamp duty holiday which has been in effect for the past two years will end on March 24.  The possible savings per property purchase is between £1,250 and £2,500 for a first time buyer so the stamp duty holiday is given credit for the rise seen in February of new buyers.

Richard Donnell, Director of Research at Hometrack, remarked, “Higher demand and firmer underlying pricing levels have seen the average time on the market fall from 10.2 weeks in January to 9.9 weeks currently.  While changes in demand are subject to seasonal factors and sentiment, so the time on the market is the ultimate indicator of the relative health of the housing market.  In February, the figures show a clear north south divide.  The average time on the market in the midlands and northern regions remains at just under three months while in southern regions the time to sell averages just over two months (8.8 weeks).

“While the seasonal pick-up in demand is to be welcomed, the fundamentals facing the housing market remain largely unchanged – the average time to sell for example, remains at relatively high levels and the balance of supply and demand remains in negative territory.  In the short term a lack of housing for sale is set to underpin prices while market activity will benefit from the support of first time buyers as they race to beat the ending of the stamp duty holiday.”