First time buyers are at their highest level since 2006, according to recent figures released by UK Finance. In 2017, there were 365,000 first time buyers who bought homes in 2017, an increase of 7.7% when compared with the previous year.
So why is this? Some of the boost in first time buyers can be attributed to the Government’s Help to Buy scheme. The scheme allows the buyer to purchase a home while only having to raise 5% of the property value - the government will then provide a further 15%. We calculate that around 9% of homes bought by first time buyers in England have used finance from the scheme. In addition to government incentives, low interest rates and weaker activity from investors has also assisted new buyers.
Building steadily over the last few years, the number buying homes for the first time was just 3% below the number of existing owners who moved during the year. Ten years ago, the number of first time buyers was 40% lower than home movers. The stamp duty break could provide a further boost this year and it is possible that the number of first time buyers will exceed home movers for the first time.
If you are looking to buy or sell a property, contact your local branch today.
Source: dataloft, UK Finance