First time buyers increase in 2019 as 2020 gives more clarity
In a world where the media is bombarding us with news, it is understandable for the public to accept the headlines at face value, and seldom look at what the news is really telling us.
For instance, whilst the country’s media was wrapped up in all things Brexit over the last 12 months, millions of people were still going about their lives, making moves that affected the economy.
A good example of this is that first-time buyer numbers hit a 12-year high, accounting for more than half of all homes bought with a mortgage, according to the Yorkshire Building Society.
Although the figure was similar to 2018, it edged near to the pre-financial crisis level of 400,870 recorded way back in 2006.
The statistics showed that the first time buyer’s mortgage market share is at its highest since 1995.
There are many reasons why the market is more appealing to first-time buyers, such as an increase in lenders offering mortgages of 95% of a property’s value, as well as lowering the deposit first-time buyers need.
To add to this, there is also more flexibility in mortgages with terms of up to 40 years.
Also, first-time buyers have reaped the benefits from government support, such as the Help to Buy equity loan scheme and Help to Buy ISA, as well as stamp duty relief on the first £300,000 of a property’s price.
Needless to say, here in Staines and the South East, which are generally the most expensive regions for first-time buyers, and are also the most popular places those wanting to get on to the property ladder, around 20 per cent who bought their first home in 2019 did so in the South East, which is far higher than in other regions of England.
Regardless of what way any of us voted, the clarity of leaving the EU seems to be a positive thing for the economy after three years of wrangling, so we can all hope that the start of the new decade is one that can be greeted positively.
Here at Dale and Newbery, we were involved in many conveyancing cases as we helped people buy and sell property in 2019, and expect 2020 to be no different.
Property remains a fascination with the British, still a great investment, and London and the South East will continue to be a huge magnet for millions from all over the world.
Let us hope for good economic conditions in the upcoming years.