Mortgage Advice for First Time Buyers, First Time Buyer Mortgages and First Mortgage Advice

First time buyers snapping up properties before prices rise

02-Apr-2014

The prospect of future house price rises have prompted many first time buyers to snap up properties now while they are still available.

According to the latest First Time Buyer Opinion Barometer from LSL Property Services, there were 22,400 first time buyer transactions in February 2014. This represents a 42 per cent increase from 15,800 in February 2013.

The findings also showed that 96 per cent of tenants registered with Your Move and Reeds Rains wanted to become homeowners, up from 92 per cent in December 2013. 

Some 81 per cent of first time buyers expect prices to rise in the next year, with 48 per cent predicting rises of up to five per cent.

A further 24 per cent expect rises of five to ten per cent. A further nine per cent expect prices to rise by more than ten per cent.

Just 14 per cent predict house prices to remain the same over the next year. 

Commenting on the findings, David Brown, commercial director of LSL Property Services, said: "The reason first time buyers are taking advantage of Help to Buy in such numbers is that they expect prices to keep rising. That’s pushing up demand in the short term, which is supporting prices in the long term.

"Rising prices and growing transaction numbers are encouraging house building, which will boost the country’s housing stock. The question is whether supply will now catch up with demand of its own accord or does the government need to do more to boost building?"

It is also cheaper for first time buyers to get on the property ladder, the findings revealed. The amount first time buyers had to pay for a deposit fell four per cent year-on-year to £25,773 in February, reaching a 16 month low.

There has also been a rise in optimism among consumers, with just ten per cent believing that they will never be able to afford to buy.
Article Options:

Email this article to a friend

Get updates from our RSS Feed

Post this article to:

del.icio.us

Digg

Reddit

2014: Jul | Jun | May | Apr | Mar | Feb | Jan

2013: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2012: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2011: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2010: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2009: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2008: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar


Free e-Bulletin

News and Offers for First Time Buyers

Register

There's alot going on! What do you think?

Interest rates are low but could rise? Is this a good time to buy?

Yes
No

Varialbe rate mortgages go up if bank interest rates do. Which is your preference?

Fixed Rate
Variable rate

Interest only mortgages are cheaper but in the end you don't end up owning the property. Which is better?

Interest Only
Repayment

House prices are waivering. Do you think this is a good time to buy?

Yes
No

Shared equity mortgages allow you to buy a new home with 5% deposit and an equity loan through FirstBuy. What do you think?

Too complicated
Too expensive
Too risky

Rent to buy allows you to peg a property price, save towards a deposit and pay reduced rent. What do you think?

Works best in a rising market
Too complicated
Good option


 

You Tube