Rare species spotted in Worthing – the first time buyer!
18 Oct, 2018
Media talk about the market getting quiet is almost always skewed to reflect the interests of the people watching or reading the report. In general they are older and therefore more likely to own a property. Stories are often about the negatives in the market – fewer homes available or new landlord taxes – and not about many of the positives such as Help to Buy, ultra-low interest rates and more buyer choice for example.
Some news that may have passed you by this week -;
Data from UK Finance shows that there were 35,500 new first time buyer mortgages completed in August, 2% more annually and the very highest since June 2017. In contrast, the number of ‘home mover’ loans and remortgages dropped to 38,000 in August. Buy to Let (BTL) loan approvals are down about 13% annually.
What Does This All Mean?
Property sales remain quite stable but there is no doubt that recent tax hikes have subdued the BTL market and have lead inadvertently to a shortage of good rental stock (rents have crept up since).
The slack in BTL purchases has however been taken up but newly motivated first time buyers who see low interest rates, increasing rents and stable prices as their opportunity to (at last) get a foot on the ladder.
“We’ve definitely seen a big pick up in enquiries from first timers, which is great” says Robert Luff. “It will at last be the catalyst that kick starts many property chains and means even more people will be able to move freely”.
What About the Buy to Let Market?
“I see this slowdown by landlords as a blip, property can still give a better yield than money in the bank and of course the value can rise, but there’s no doubt buyers now have to take a more long-term view” says Rob.
Are you a first time buyer considering taking advantage of the market?
Take a look at these properties below for your first step on the ladder...