They’re back! First-time buyers at highest number since crash

The article below is from Property Industry Eye
Written by Rosalind Renshaw, 28th August 2015:

They're back! First-time buyers at highest number since crash.

First-time buyers have come storming back into the market in the highest numbers since before the crash.

This morning estate agents Your Move and Reeds Rains - both part of LSL - said that in July there were 29,700 first-time buyers, the highest number since 35,300 in August 2007.

The firms' prediction of a post-recession record is sharply at odds with the NAEA which this week reported that the number of first-time buyers fell in July.

Your Move and Reeds Rains insist that the number of first-time buyers has been rising, and is up 5% on June.

The firms also produced figures showing just how low first-time buyer numbers have fallen in the last four years, numbering just 12,300 in April 2012 after a Stamp Duty holiday ended.

This year started with around 19,000 first-time buyers.

In July, the average first-time buyer paid £161,985 for a home - 8.9% higher than a year ago. They were able to get a mortgage of nearly 83% loan to value, but still needed to find a deposit of £27,975 - up 10% on last year.

According to Your Move and Reeds Rains, first-time buyers are rushing to get on to the ladder ahead of interest rate rises and before the best mortgage deals are withdrawn.

Adrian Gill, director of the firms, said that many wavering first-time buyers are jumping on the property ladder before repayment costs shoot up.

He added: "Some may have held back briefly when considering the rising deposit costs. But real wages have been growing too, and first-time buyers are able to shoulder the short-term burden of a slightly higher deposit to spare the risk of losing out on a good mortgage deal."

First-time buyer prices vary enormously from around £109,000 in the north-east to almost £275,000 in London.

Similarly deposits also vary markedly, from an average of £17,659 in the north-east to £66,879 in London.