first-time buyers
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Housing Market
First-time buyer activity hits pre-recession high
There was a sharp increase in the volume of first-time buyers in the UK in July, as the prospect of a rise in mortgage borrowing costs encouraged more young purchasers to acquire their first home. The latest First Time Buyer Tracker index from Your Move and Reeds Rains reveals that the number of first-time buyers reached their highest level in July since the recession, paying £161,985, on average, which is 8.9 per cent higher than in the corresponding month in 2014. Overall, there were 29,700 sales of residential properties to first-time purchasers in July, up 4.9 per cent month-on-month. This is in spite of the fact that the average first-time buyer now requires a deposit of £27,975, which is up 10 per cent compared with July 2014’s figure of £25,429. While rising deposit costs may have deterred some prospective purchasers in recent months, increasing real wages have enabled some first-time buyers “to shoulder the short term burden of a slightly higher deposit” to spare the risk of losing out on a good mortgage deal, according to Adrian Gill (left), Director of estate agents Your Move and Reeds Rains. He added, “This month’s particularly high transaction rate is also partially due…
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Housing Market
First-time buyers make up nearly half of all mortgages
First-time buyers in this country now account for almost half of all homes purchased with a mortgage, a rise of 38 per cent since 2011, owed in part to a surge in first-time buyer mortgage deals, new research shows. The study from the Halifax revealed that first-time buyers make up 47 per cent of all mortgage-aided acquisitions, while the deposit that they have to pay has increased by 6 per cent over the past 12 months to an average of £29,894, reflecting a general rise in property prices over the past year. The average first-time deposit is now 82 per cent or £13,494 higher than in 2007. Overall there were an estimated 139,500 first-time buyers in the first six months of this year, down 7 per cent year-on-year, but while this is the first annual decrease on this basis since the first half of 2011, it is still the highest total for the first six months of the year since 2007. Craig McKinlay (left), Halifax Mortgages Director, said, “There was a modest decline in the number of first time buyers in the first half of the year following the substantial increases recorded in 2013 and 2014. This fall has been…
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Latest property news
Stamp duty changes save homebuyers £701m
The Stamp Duty Land Tax reforms that were introduced in December last year have saved UK homeowners £701million in the six months since the changes came into force, according to myhomemove. The Government’s estimate that the changes to how stamp duty is levied has cut the tax for 98 per cent of people purchasing homes under £937,500, is supported by the research carried out by the conveyancing service provider, which found that since the reforms each house buyer below this level has saved an average of £1,400. “The stamp duty reforms have saved UK home buyers a significant amount of money since its introduction and provided an important boost to the property market, just as house transactions were starting to slow down in the run up to the General Election,” said Doug Crawford, CEO of myhomemove. He points out that the changes have had a particularly positive impact on those struggling the most to get onto the property ladder, including first-time-buyers, as they can now save more money towards a deposit for their purchase. Crawford (left) continued, “Under the old ‘slab’ system, there was a substantial increase in price at the stamp duty thresholds, which the reforms have reduced significantly,…
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Housing Market
Ed’s last stand: “a load of cobblers”
General Elections bring out the opinions of the electorate and property people have been more than forthcoming in these last days before the big election day on 7th May. Naomi Heaton (left), CEO of London Central Portfolio says that Ed Miliband’s “last stand” is “a load of cobblers”. Among her points are: “The latest Labour pledge is to abolish stamp duty for first-time buyers buying homes worth up to £300,000 for the next three years. They have said that it will benefit nine in 10 such buyers to the tune of £5,000. Rubbish. “Labour is clearly very bad at its sums, which is why, of course, we are so worried about them running the economy. “The average purchase price for a first time buyer outside London is £137,120, (Halifax). Following the Stamp Duty reforms introduced by the Conservative coalition last December, the Stamp Duty charge for buyers at this level is just £242. This is what the Labour policy would save, not £5,000. “If we look at the country as a whole, including London, the average price for a first time buyer, is £171,870. Again, due to the recent reforms, Labour would be knocking off £937 off their purchase costs,…
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Housing Market
Labour proposes housing bond to develop 125,000 new homes
Labour plans to introduce a housing bond system to generate up to £5 billion to fund the construction of up to 125,000 new homes if elected at next month’s General Election, the party has said. Using the Help To Buy ISA, which was announced for first-time buyers by the Chancellor, George Osborne,as part of his Budget last month, the new bond scheme would enable house builders to develop significantly more new homes Income from the ISA would be placed into a “future homes investment fund” for new residential property schemes and is similar to housing bonds used in the 1920s to stimulate housebuilding. The fund, designed to help tackle the chronic housing shortage in this country, will be targeted at new sites with first-time buyers offered priority. In a speech to Labour supporters in Warrington on Saturday, Ed Miliband (left), said, “There’s nothing more British than the dream of homeownership. Starting out in a place of your own. But for so many young people today that dream is fading.” Describing Labour’s plan as the “first real plan for housebuilding in a generation”, Mr Miliband has vowed to deliver at least 200,000 homes a year by the end of the parliament,…
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Housing Market
First-time buyers return to the market
Almost a third of all residential property sales in February were made to first time buyers, suggesting that market conditions are improving for first-time buyers, according to a new report. The findings, by the National Association of Estate Agents (NAEA), revealed that its member agents found that 30 per cent of homes were sold to first-time buyers, the highest figure since September last year – and since records began six years ago. It is clear from the findings in the report that things are starting to ease for first-time buyers, and Mark Hayward (left), Managing Director at the NAEA, believes that this could be down to reduced property prices or more accessible funding, especially following December’s stamp duty reforms. “We will all be waiting with bated breath to see if the first time buyer figures increase following the new Help to Buy ISA, and whether we see real momentum in the market,” he said. “It still remains notoriously hard to get cut-through in the property market, especially for first time buyers, so any green shoots are encouraging.” The findings in February show that demand for property rose, with 366 house hunter’s registered per NAEA member branch, up from 353 in…
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Housing Market
Housing is a top issue for voters
One of the most closely contested General Elections for decades is now formally under way, with the NHS, economy, immigration, welfare and jobs all high on the political agenda. But housing is also a major concern for many voters and could prove a key electoral battleground for the various political parties, according to pollster Ipsos Mori. Ipsos Mori’s latest Issues Index reveals that 14 per cent of voters currently rank housing as among the most important issues facing the country, up from 5 per cent in 2010, as more people struggle to afford to buy their own home in light of higher property prices and a general housing shortage. The Conservative party, which has reformed the planning system and introduced various Government initiatives including its flagship Help to Buy scheme since coming to power in 2010, has vowed to boost the level of discounted starter homes available for first-time buyers under the age of 40 if re-elected in May. Writing in PROPERTYdrum magazine, Brandon Lewis (left), the Housing and Planning Minister, said, “We’ve supported the aspirations of hard-working people. Help to Buy is enabling homeowners to purchase with a fraction of the deposit they would normally require, and leading developers…
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Latest property news
Housing industry welcome Chancellor’s boost for homebuyers
First-time property purchasers saving for a deposit will be given a 25 per cent financial top up from the Government, George Osborne (right) announced in last week’s Budget statement, much to the delight of many property professionals. Many industry experts are pleased that the Chancellor has recognised the need to provide yet more support for homebuyers by announcing the launch of a Help to Buy ISA later this year. Whilst the operational details still need to be finalised, in principle the scheme will provide an important financial incentive for first-time buyers, helping many people achieve the goal of owning their own home. “Combined with the extension of Help to Buy and measures introduced in the Autumn statement to reform Stamp Duty Land Tax with a fairer system, this should provide further positive stimulus for the wider housing market,” said Chris Endsor, Chief Executive of Miller Homes. Nicholas Leeming (left), Chairman of Jackson-Stops & Staff, with 44 offices nationwide, also welcomed the announcement of a new Help to Buy ISA in last week’s Budget. He commented, “Any help to incentivise the young to save money and enable them to get on the property ladder has to be welcomed. We look forward…
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Housing Market
General Election
With the clock ticking towards the 7th May, this is a good time to reflect on what we’ve achieved in this parliament. In 2010 we inherited a broken housing market: builders couldn’t build, lenders wouldn’t lend and buyers couldn’t buy. Housebuilding starts were at their lowest for any peacetime year since the 1920s and a generation of hardworking young people – who could have rightly expected to take their first step on the property ladder – were locked out of homeownership. Great progress has been made but the challenge remains considerable.” Fast forward to today and the landscape is very different. The numbers of first-time buyers has hit a seven-year high; planning permission has been granted on 240,000 new homes in the year to October, and housebuilding starts are at their highest since 2007. LONG-TERM STRATEGY And this turnaround didn’t happen by accident – it required a longterm economic plan to restore confidence to the market and get the country building again. Above all that meant security. Firm action to tackle the deficit – keeping interest rates at their record low, ensuring mortgages remained affordable and encouraging business investment. We’ve supported the aspirations of hard-working people. Help to Buy is…
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Features
Property investors – fill your boots!
With buy-to-let mortgage borrowing rates plunging and rental values rising, landlords are adding to their buy-to-let portfolios, says Marc Da Silva.
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