You are here: Home - First Time Buyers - News -

January jump in first-time buyer numbers

0
Written by:
10/02/2017
A fall in the number of landlords buying property has allowed first-time buyers to get a foot on the ladder
January jump in first-time buyer numbers

The number of first-time buyers surged last month as a lull in landlord purchases kicked in, according to Connells Survey and Valauation.

In the first month of 2017, it noted that first-time buyer valuations rose by a fifth year-on-year (21%), driven by high employment and an uplift in weekly earnings.

This has increased the importance of first-time buyers to the overall housing market, as they are now responsible for a third of activity (34%), up from a quarter at the start of 2016 (25%).

John Bagshaw, corporate services director, said: “With UK employment close to its 11-year high and weekly earnings rising by 3%, many first-time buyers are fitter financially than they were a year ago. Aided by cheap mortgages rates, aspiring home owners have seized the opportunity to get their first foot on the ladder.”

Buy-to-let down

At the same time landlord investment has declined by 63% year-on-year, said Connells.

This is partly because of the surge in buy-to-let purchases in January 2016 as landlords brought forward purchases to avoid the stamp duty surcharge – but landlord investment is still well down on January 2015.

John Bagshaw said: “The new White Paper’s aim of helping tenants through supporting the build to rent sector could be rendered ineffective with this recent drop in investment from private landlords. While a potential increase in build to rent homes will take some years to filter through, the slowdown in buy-to-let purchases will soon start to bite, with fewer rental properties coming onto the lettings market.

“This shortage of supply could fuel competition from tenants with the potential to push up rents.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Speak to an adviser

Could you benefit from impartial, free advice?

Your Mortgage Guides

Guide to Offset Mortgages

Download our handy guide to offset mortgages, brought to you in partnership with Scottish Widows Bank

Read More >

Is your mortgage fully protected with critical illness?

For a free quote or to speak with an insurance expert call 0800 1218744
Read previous post:
2221291-rental
UK rents grew 3% last year

Many tenants now spend up to half their salary on rent

Close