Could 2016 be the year for first time buyers with low interest rates and landlords facing tax increases
Rightmove have reported a 10% increase in 2 bedroom properties to market. Landlords are facing major tax increases including a 3% increase in stamp duty and the government stopping landlords offsetting mortgage interest against income.
Miles Shipside, Rightmove director, stated “For the second month running the highest increase in supply of homes coming to market is properties with two bedrooms or fewer, typically the target purchase of first-time buyers or buy-to-let investors. There is a 10% uplift in new supply compared to the same period in 2015, meaning all regions have more fresh choice in this sector than at this time last year. Regions outperforming the national average with over 10% more newly-marketed homes with two bedrooms or fewer are London, East, South East, South West, West Midlands, and Yorkshire & the Humber, and if this trend continues the increased competition among new sellers may help to temper price rises. More and more agents are reporting a healthy return in first-time buyer numbers, and with the cards increasingly stacked in their favour 2016 could prove to be the year of the first-time buyer.”
“The new year’s market has hit the ground running in many locations, continuing last year’s momentum and resulting in the price of property coming to the market hitting a new high. Many agents reported high numbers of sales in November and December and properties selling more quickly, so it’s encouraging to see signs of replenishment of property, especially in the first-time buyer sector.”
“While more properties are coming to market there is little anecdotal evidence of tax-shy landlords selling up. It is more likely made up of additional first-time sellers who are either hoping to bag a buy-to-let investor before the April stamp duty hike, or joining others who are deciding that 2016 is their year to trade up. Those trading up are no doubt encouraged by the stable interest rate outlook reassuringly communicated straight from the Governor’s mouth.”