First-time buyers taking their chance to get on the ladder
New research from UK Finance shows that first-time buyers are taking advantage of a subdued property market across the country - with 17% more people buying their first home compared to two-years ago.
With a fall in buy-to-let and cash purchases, new buyers were able to enter the market and take their first steps on the property ladder during August.
We’ve discussed that our region is still seeing gains, how York leads the way for property price increases and that sales are up in Yorkshire but it’s not the case throughout the whole country.
However, a total of £24.2bn was lent in August, mortgage approvals almost reached 42,000 and 17% more people bought a home than a couple of years ago.
What does this mean?
Since the turn of the year, the market activity has grown slowly but a shift towards first-time buyers has been seen. This makes sense when you look at growth regions such as: northern England, Wales and Scotland while southern England activity was much lower.
Buy-to-let investments dropping
July saw a huge 31% drop in buy-to-let investment compared to two years previous, and this is sure to be a key factor in the increase of buyers because they look at similar properties.
356,000 first-time buyers bought before the end of July, just slightly less than the 361,000 home-movers for the same timeframe.
Why’s this happening?
The Government’s Help to buy scheme is attracting interest, as is the Help to Buy ISA that’s on the market.
Arguably though, the biggest change is the amount of 90% mortgages on the market. A record number, 275, are available with the rate being charged on loans also falling.
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