The number of first time buyers entering the property market is at its highest level since November 2007, primarily attributed to the fall in mortgage rates, the average mortgage rate level decreasing from 4.92% in 2012 to 3.99% this year*.
These more favourable conditions have allowed the number of first time buyer sales to rise from 18,000 over 12 months ago to 26,100 in July 2013*.
Funding for Lending from the government has played its part in reducing rates, and the Help to Buy scheme on new homes has provided increased opportunities to get on the property ladder with a small deposit.
With economic confidence returning, buyers are feeling more reassured of their future prospects; this combined with a number of incentives is helping to drive up the number of buyers in this category.
This growth in first time buyers does put strain on entry level property supply which we have witnessed in the very rapid turnaround of property in the lower price bands across our branch network area.