Future looking bright for first-time buyers – Mortgages St Neots – Bright

Taking your very first step on the property ladder is always going to be a challenge. But recently it seems more first-time buyers are able to take the plunge – and thanks to the expected reduction in interest from landlords, it looks as though things could get even better in the months to come.

Bright Advice – Mortgages St Neots

New figures have been release by the National Association of Estate Agents (NAEA) which show that sales to first-time buyers (FTBs) rose last month, with around 28% of total sales being made to this sector of that market. This is an increase of 4% from February and it is expected to rise even more in the coming months. During the survey done by the NAEA, they discovered that 39% of estate agents expected the but-to-let (BTL) stamp duty reforms to increase availability for FTBs as landlords will now look to back away from the market.

36% of the estate agents believe that sales to FYBs will continue to pick up as they’ll be less competition for properties, with landlords being discouraged to buy due to the stamp duty charge. Given that many BTL invests are homes that are typically suited to first-time buyers, this has to be good news for the sector.

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Bright – Mortgages St Neots

Supply is also on the rise, with the latest figures showing that the number of houses available to sale soared by 54% last month. Having said this, demand dipped notably, with an average of 417 house hunters registered per branch, down from the 12-year hifi of 463 in February, may landlords have already started to leave the market.

In event better news for those who are struggling not to be priced out, estate agents also reported a decrease in the number of properties selling for more than the asking price, with just 7% seeing this happen in March, the figure was at 11% in February.

The managing director of NAEA, Mark Hayward had this to say about the findings: “In the last few months FTBs have had to compete with landlords for the same properties, and those landlords have really pushed hard to complete ahead of the rise in stamp duty. Now, in theory, things should get easier for FTBs – as we have seen with a slight increase in sales this month – as those seeking to buy to let will tail off.”

However, he points out that FTBs might not notice a huge difference in the long term as prices will remain high and housing is in short supply, but it’s hoped that the Government will stick to its promise and continue to increase the amount of homes that are being built each year. This should therefore bring supply and demand closer together, which will work out better for FTBs in the long run.

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Bright – Mortgages St Neots

Bright Advice – Mortgages St Neots

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