27% fall in first-time buyer inquiries seen by Zoopla as people ‘pause and wait’

First-time buyer inquiries for homes have fallen by 27% in the past week, compared with the same period a year earlier, according to a property website.

The Bank of England raised the base rate from 3.75% to 4% last week, in the first rise in interest rates in more than three years, pushing up mortgage costs for some borrowers.

Zoopla recorded the 27% annual fall in the week to November 8.

Richard Donnell, executive director at Zoopla, said: “First-time buyers are the engine of the housing market, accounting for four in 10 sales last year.”

He added: “Higher mortgage rates over the year have reflected expectations of further increases in the base rate, with the Bank of England decision last week making more buyers pause and wait.

“The good news for those ready to move is that there are more homes to choose from, particularly at the more affordable end of the market.

“Sellers need to recognise that buyers have more choice and pricing realistically is increasingly important.”

Zoopla defined inquiries as occasions when first-time buyers make contact with an agent via the website to arrange a viewing or ask more detail about property.

Nathan Emerson, chief executive of property Propertymark, said: “Any changes to borrowing costs could have implications for affordability and confidence among prospective buyers, particularly those already facing financial pressures.

“Despite these wider economic considerations, Propertymark agents have continued to report steady numbers of registrations from prospective buyers overall, alongside stable numbers of new properties coming on to the market.

“This suggests that, while some buyers may be taking a more measured approach in the current climate, underlying interest in the housing market remains relatively consistent.”