The most recent research from Connells Survey & Valuation suggests that demand from first-time buyers is driving the UK housing market.
Data from the investigation indicates that landlords and homeowners are delaying making any decisions, amidst economic and political uncertainty.
First-Timers
First-time buyers made up 49% of all property purchases during the last month – up 6% on the five year average of 43% for July.
Increased activity amongst those looking to gain a foot on the housing ladder was supported by a rise in mortgage lending. First-time buyers took out 36,000 loans in June, a rise of 22% month-on-month and 6% year-on-year, taking it to the highest level since November 2006.
John Bagshaw, corporate services director of Connells Survey & Valuation, noted: ‘Demand from first-time buyers is supporting the housing market at the moment. People are eager to get on the property ladder, with record high employment and competitive mortgage rates. But this doesn’t mean it’s an easy task to get a foothold in the market.
UK property market being driven by first-time buyers
‘Economic conditions are still tough. The increasing cost of living and house price inflation are making it harder to save for a deposit. House prices are around eight times higher than earnings – and they’re rising twice as fast.’[1]
In addition, Mr Bagshaw suggests that with the typical price of a property rising steadily, first-time buyers should receive help, perhaps in the form of an exemption from stamp duty.
[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/8/first-time-buyers-are-currently-supporting-the-uk-housing-market