January increase in first-time buyers

Reported by Connells Survey and Valuation, as landlord purchases dropped last month there was spike in first time buyers numbers.

As a result in an increase in weekly earnings, valuations have risen by 21% year on year for first time buyers in January 2017. This has highlighted how important first time buyers are to the housing market holding a 34% share of the market.

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.”

Looking at the same time parameters,  there has been a 63% decline in buy-to let purchases.

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.”

You can read the full article published Your Money

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