Lack of first-time buyer mortgages poses biggest threat for agents' survival

Just over half of estate agents (52%) say the lack of mortgage finance for first-time buyers poses the single biggest threat to their business.

One in five agents (21%) said that ongoing weakness in the economy and rising unemployment following the public sector cuts announced in the Spending Review are the biggest threat to their businesses.

Only 10% see falling house prices as the biggest threat, while 5% see their competitors as the biggest challenge, and just 2% see changes in the regulatory environment as representing the biggest threat to their business.

The findings emerged in a survey of 300 estate agents by Obligo, a provider of financial services solutions to estate agents

Chris Gardner, director at Obligo, said: “The difficulties first-time buyers are having in securing mortgage finance, and finding the necessary deposit, which is often tens of thousands of pounds, is easily the biggest worry for most agents.

“If first-time buyers are in short supply, as agents are acutely aware,  transactions all the way up the ladder suffer, too.

“Agents are also concerned about the outlook for the economy in the short to medium-term. Next year is shaping up to be an extremely challenging time as the axe falls on many public sector employees. Rising unemployment and falling consumer confidence could severely impact housing transactions.”