Government initiatives and low interest rates are aligning with more property choice for first-time buyers, with 10% year-on-year jump in the number of two beds or fewer coming to market, according to Rightmove.
Miles Shipside, Rightmove director, commented:
“For the second month running the highest increase in supply of homes coming to market is properties with two bedrooms or fewer, typically the target purchase of first-time buyers or buy-to-let investors. There is a 10% uplift in new supply compared to the same period in 2015, meaning all regions have more fresh choice in this sector than at this time last year. Regions outperforming the national average with over 10% more newly-marketed homes with two bedrooms or fewer are London, East, South East, South West, West Midlands, and Yorkshire & the Humber, and if this trend continues the increased competition among new sellers may help to temper price rises. More and more agents are reporting a healthy return in first-time buyer numbers, and with the cards increasingly stacked in their favour 2016 could prove to be the year of the first-time buyer.”
The price of property coming to market has also hit a new record less than two months into the new year’s seasonal upturn. New seller asking prices have increased by 2.9% (+£8,324) this month, in spite of some improvement in the balance between supply and demand.
There are signs of fresh supply increasing with the volume of new properties coming to the market at the highest level since the credit crunch of 2008.
However, only four regions saw over 5% year-on-year average uplift - London, South East, South West and Yorkshire & the Humber. In the West Midlands new stock is down by 0.3% and Wales and the North West have seen an uplift of 1% or less, restricting fresh choice for buyers in these regions.
Miles Shipside added:
“The new year’s market has hit the ground running in many locations, continuing last year’s momentum and resulting in the price of property coming to the market hitting a new high. Many agents reported high numbers of sales in November and December and properties selling more quickly, so it’s encouraging to see signs of replenishment of property, especially in the first-time buyer sector.
“While more properties are coming to market there is little anecdotal evidence of tax-shy landlords selling up. It is more likely made up of additional first-time sellers who are either hoping to bag a buy-to-let investor before the April stamp duty hike, or joining others who are deciding that 2016 is their year to trade up. Those trading up are no doubt encouraged by the stable interest rate outlook reassuringly communicated straight from the Governor’s mouth.”
