First Time Buyers are on the rise

These blogs and the information contained in them may no longer be current and therefore much of the information/figures quoted could be out of date and shouldn’t therefore be used as an indication of the current situation. If you require any further clarification please contact Derngate Wealth.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The reported number of first time buyers was on the rise in May, whereas the number of approved buy-to-let approved mortgages fell.

This could be because tax changes and policies have changed recently, making it more difficult and less profiatable to become a landlord, and so rebalancing the housing market.

According to financial services lobby group, UK Finance, in May there were 8.1% more first time buyers compared to the same time last year, and lending was up by 12.5%.  In addition, the average first time buyer has an annual salary of £42,000 and has a 15% deposit, with an average age of 30.

The Help to Buy scheme and shared ownership initiatives have all played their part in helping people to buy a property, and without these they would not have been able to afford to buy their own home.

In contrast, the buy-to-let market fell by 9.8% and lending was 22% lower than it was the same time last year. This is due to regulatory and tax changes, and the buy-to-let market could further suffer as the full effect is felt by landlords.

One of the biggest changes was the stamp duty being increased for those buying a second home, making a buy-to-let property unaffordable for some people.

Despite this rise in first time buyers, it’s still difficult for some people to get onto the property ladder. Affordability is a stumbling block for some, and this is reflected in the increase in loan to income multiples.

If you would like advice on buying a property for the first time, contact Derngate Wealth today.

Read more:

July 15, 2018Danny PerryBlog

Comments are closed.