According to the latest figures from UK Finance, the number of First Time Buyers getting their first mortgage increased over the summer.
Undeterred by political and economic uncertainty, there were 32,640 new first-time buyer mortgages completed in July 2019, 5.8% more than in the same month in 2018. According to UK Finance, there were also 32,710 home mover mortgages completed in July 2019, 1.4% more than in the same month a year earlier.
Founder and CEO of Springbok Properties, Shepherd Ncube, said: “Strong buyer demand is continuing to drive the UK property market, and this is being led by our army of aspirational first-time buyers, which is great to see.
“Undeterred by Brexit angst and spurred on by the dream of homeownership, this demand has been fuelled by the continued affordability of mortgage products, a wider slow in the rate of house price growth and a steady uplift in earnings. All of which have combined to create almost ideal conditions to take that first step on the ladder.
“While the initial barrier of a deposit is still an issue for many, the landscape is far from the doom and gloom for those that can overcome it.”
Landlords are also not put off by recent shakeups to the rental market, suggesting strong demand for good quality rental homes. There were 5,800 new buy-to-let home purchase mortgages completed in July 2019, 5.5% more than this time last year.
Director of Benham and Reeves, Marc von Grundherr, said: “Buyer demand remains alive and well with the number of new mortgages being approved increasing across the board.
Market conditions remain far from ideal but it’s particularly encouraging to see that despite the government’s best efforts, there has not only been an increase in the number of new buy-to-let mortgages but also in the number of landlords remortgaging within the sector.
“This suggests that landlords are sticking with their investment and with an influx of new investors, it’s clear that the buy-to-let sector remains an attractive one. As the backbone of our rental market, it’s extremely important that buy-to-let continues to take the slack left by a lack of affordable housing and so today’s positive figures are warmly welcomed.”
Founder and CEO of GetAgent.co.uk, Colby Short, added: “It’s great to see buyer demand alive and well in the UK property market and more of us are taking advantage of what could be coined as a ‘buyers market’ to borrow more than we previously have while the terms remain favourable.
“We’ve seen a significant drop in the number of homeowners choosing to remortgage on a property and this has again been driven by the current climate of mortgage affordability and the wealth of alternative products on the market tempting homeowners with a more appetising offering.
“All in all, very positive and once this sentiment trickles through to the business end of the market, we should see a greater degree of stability return with an uplift in both transactions and property values.”
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