Number of first time buyers completing risen 7% over last 12 months
According the the Estate Agents Your Move and Reeds Rains the number of first time buyers completing property purchases between February 2015 and March 2016 has risen 7% even though in January and February there was a 1.4% drop.
Lower interest rates and the requirement for smaller deposits has helped. Mortgage rates have dropped on average 0.52% over the last 12 months. First time buyers have also been putting down bigger deposits with the average deposit of £29,451.
Adrian Gill, director of estate agents Your Move and Reeds Rains, said: “February is a traditionally quiet period for the first-time buyer market. The month sits awkwardly between the New Year property market rush and the spring-summer activity high. However, beyond that seasonality, these figures demonstrate the strong, steady underlying growth that comes with growing first-time buyer confidence.
“This optimism may begin to reveal itself more clearly in March, when an Easter uplift may sweep away any residual doubts among some first-timers.”
Gill added: “Although many first-time buyers will baulk at the rising deposit costs, there is a silver cloud to this grey lining. Larger deposits tend to indicate growing incomes and larger mortgages, meaning an impressive number of first-time buyers are accessing the capital to purchase a first home, even in a sellers’ market.”