Quantcast
Menu

First-time Buyers

First-time buyers benefit from Brexit

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
04/08/2016

Housing market activity has shifted in favour of first-time buyers

First-time buyers has been boosted by Brexit, with activity in the first-time buyer and remortgaging sectors driving July’s valuation market, according to Connells Survey and Valuation.

There were 12% more first-time buyer valuations in July 2016 than in July 2015. Meanwhile remortgaging activity also saw the same 12% annual rate of growth.

Overall, July saw a 2% fall in valuations compared to the same month last year, and a slight cooling compared to June; in the month of the referendum itself.

John Bagshaw, corporate services director of Connells Survey and Valuation, said: “Judging the Brexit effect might take years – but in the meantime the first full month after the vote already looks encouraging.

“Change has mainly been confined to the mixture of activity, rather than the overall volume of valuations. Any clouds of uncertainty are showing their silver lining for first-time buyers, if anything dealt an advantage as some other buyers paused for thought in the weeks immediately after the result. If longer-term economic issues are on the horizon, first time buyers aren’t feeling the effects yet.”

Fewer home movers

Home movers have been slightly more cautious in July than those making their first step, said Connells. Compared to the same month in 2015, home mover valuations have dropped by 8%.

Buy-to-let activity has also been cooler in July than at the same point a year ago. The total number of valuations for buy-to-let purchases has now fallen by 41% since July 2015.

Bagshaw said: “Buy-to-let activity is steady post-Brexit vote, even if at a level lower than last year. In fact this correction is not new, and mainly not as a result of referendum uncertainty. Since April, held back by the Government’s 3% Stamp Duty surcharge, some landlords are pausing for thought. Looking ahead, tax changes are increasingly factored in to landlords’ investment plans which forms a strong core of buy-to-let activity focused on the long-term and a solid basis of future growth in demand for valuations from landlords.”