Many more homes sold by departing landlords, first-time buyers seize opportunity

In July, 18,610 housing transactions were recorded, a quarter more than a year ago. That is according to the report 'Prices of existing houses for sale July 2024', a joint report by the Land Registry and CBS. It is the highest increase in the number of transactions since 2020.

Luck for starters

According to Paul de Vries, housing market expert at the Land Registry, the increase is linked to the departure of private landlords in the housing market. And this benefits first-time buyers in particular, he explains. Due to increased interest rates, increased transfer tax and the introduction of the Affordable Rent Act, many private investors who bought up houses in recent years no longer find the returns on the housing market so interesting. Therefore, they sell their rental properties, once the occupant has terminated the lease. This is known as selling out. This segment often involves smaller flats in the cheaper price ranges, for which investors are allowed to charge much less rent due to the Affordable Rent Act. These houses, mostly flats, are often just within the budget of first-time buyers, who are now making their move.

More young buyers

"The growth in the number of transactions is among first-time buyers, who had hardly any supply a few months ago but are now benefiting due to changing regulations," says De Vries of the Land Registry. The trend is also visible in the average age of buyers. In the second quarter of this year, 55 per cent of homes coming on the market were bought by buyers under 35 years old. That is much more than seniors or people between 35 and 65 bought.

Article link