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UK first time buyer resilience in the darkest month?

According to the latest first time buyer tracker index Enable’s IFA’s in Bishop’s Stortford can see that first time buyers in the UK appear to be fairly resilient despite a month on month dip in property sales for FTBs.  People buying their first home increased by 6.6% year on year but month on month fell by 1.4% between January and February 2016 according to Your Move and Reeds Rains figures.

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Adrian Gill, director of estate agents Your Move and Reeds Rains, reminds us that, “ February is a traditionally quiet period for the first time buyer market but the figures demonstrate the strong, steady underlying growth that comes with growing first time buyer confidence. While the more general mismatch between buyers and sellers will continue to exert upwards pressure on prices, a combination of pluck and poise from first time buyers will ensure that this does little to impact the overall trend of growing demand at this end of the market,’ he explained.

The figures also demonstrate that the costs of buying and owning a first home remained broadly stable in February, with lower borrowing costs balancing out larger prices and deposits. Overall the average mortgage rates for first time buyers have improved, down 0.56% on a 12 month basis and by a much slighter 0.03% between January and February 2016.  February’s average mortgage rate was the lowest mortgage rate for first time buyers in over five years.  The other factor is that the average LTV ratio remains high, so first time buyers have been able to borrow more against the value of the home they wish to purchase. February’s average loan to LTVs recorded in 2014/2015 and represents only a 0.1% fall on February 2015.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Source: Property Wire

Issued by: Enable Independent Financial Life Planners • 
25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339
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