November saw first time buyer activity in the UK increase to a rate 31% higher than the same month last year. Connels Survey & Valuation has released data that shows first time buyer valuations to be 2% above the annual increase for the overall housing market as well as 26% greater than the year on year increase for home mover activity.
Connels claim that a large portion of first time buyers may be eager to get on to the ladder at this particular time in order to avoid any potential rate rise by the Bank of England once the New Year hits. If there is any increase it is sure to be minimal but this is still enough to inspire the price sensitive and the cash limited to act sooner rather than later.
First time buyers are also taking every advantage of schemes such as the Government backed Help to Buy while they last. The Government has not indicated any intent to eliminate these schemes as yet but the continued improvement and rising confidence in the housing market may eventually result in the phasing out of these packages. This is further reinforced by a current economy that boasts combined growth, low levels of inflation and rising household incomes. For typically cautious first time buyers this presents an attractive economic environment.
The buy to let sector still offers great opportunities to investors which is highlighted by the sustained strength in valuations. The drive in demand is a result of an ambition to secure high investment returns along with the desire to get a foot firmly in the market before the Chancellor’s planned moves to take more money from buy to let businesses kick in next year. The recent Autumn Statement announced intentions to impose more fees and regulations on landlords in the future so many investors are acting now in an attempt to strategically outmanoeuvre the Treasury. Despite the time of year the housing market has experienced only the slightest of seasonal dips. Each sector is reporting healthy yearly growth due to economic growth, increased salaries and ever-rising consumer confidence.
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