FTB numbers up 75% - and have doubled in London

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FTB numbers up 75% - and have doubled in London

Data from haart's National Housing Market Monitor shows that first time buyers are benefiting from the current mortgage market, with second-steppers yet to realise the advantages of high demand.

First-time buyers have increased 75.7% annually and have more than doubled in London – up 102.4%.  Nationally, the haart data shows, first-time buyers represent 42.2% of all mortgages written by Just Mortgages, a 7.6% increase on August 2012 and have not been younger since March 2012 (now 32.1 years). First-time buyers also fork out a 3% lower deposit than last year (£34,997).
 


New buyers are up 31.1% nationally on last year and are up 61.1% in London. New properties coming onto the market are still down 0.8%, and 9.9% in London.

Paul Smith, CEO of haart, with a network of over 100 branches, comments:

“First-time buyers are back on the scene - this is the best they have had it since the economic crash.  Their registrations are up 75.7% annually across the UK and have more than doubled in London. This is in part due to the back-log of people who decided to rent over the last five years rather than buy, but are now benefiting from improved lending conditions. The deposits they are putting together are more affordable, down 3% annually and first-time buyers have not been younger since last year. The second phase of the Help to Buy scheme in January 2014 (mortgage guarantee) will place the aspiration of home ownership within the reach of many more.

“Second steppers will also benefit from this tsunami of first-time buyer demand as their properties will be snapped up in record time and our branches are currently achieving 98.9% of asking prices. Potential sellers should recognise these perfect conditions.

“The underlying “property bubble” niggle remains, though the distinct difference this time is that lending is more responsible. It is highly unlikely that we will see a return to the 100% LTV mortgage and extreme sub-prime market.”

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Freelancer Financials
Freelancer Financials 27 Mar 2015

For us that's great news as their lending criteria is Contractor Friendly. They place no restrictions on occupation or earnings which is great news for contractors. We've already placed some of clients...

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Savers don’t seem to have any further good news for the near future, and can only wait for the Bank of England to increase the base rate. Even then, I am not entirely confident that savers will feel any...

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A six month high in the value of lending and a second successive rise in the number of approvals shows that there is plenty of life in the market.

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Once the General Election is behind us, the property market could put the pedal to the floor again.

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For the mortgage market this could mean we see a fall in the costs of fixed rates once more as SWAP rates edge down.

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We need to use every facility we have to create the best outcomes for advisers and their clients and this joining of technology and human being is the best we have to offer.

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The Help to Buy ISA will help some households but we must guard against a situation where house prices rise faster than savings – the fate suffered by previous interventions in this area.

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A new £1,000 Personal Savings Allowance for basic rate taxpayers shows that the Chancellor has come round to our way of thinking, just in time for the last Budget before the General Election.

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Most pensioners across the country will now be considering the best way to use their new freedom and it is likely that many will decide that property investment yields are a more attractive investment

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The newly-announced Help to Buy ISA will no doubt be eagerly received... However, the money could have been better spent addressing the fundamental problems of affordability, high prices and a lack of

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Another reduction in the lifetime allowance is scandalously counter-productive. This pre-election gimmick is a disincentive to save as much as possible for retirement– and therefore it could be harmful...

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Affordability constraints remain a factor for would-be borrowers, but we are still projecting lending to pick up over the next few months.

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