First time buyer transactions jump nearly 25%
The number of first time buyer transactions jumped by nearly a quarter in November, according to the latest info from estate agents YourMove and Reeds Rains.
YourMove and Reeds Rains’ First-time Buyer Tracker recorded 31,300 transactions in November 2015 compared with 29,900 for October 2015 and 25,300 for November, an annual increase of 23.7%.
Correspondinly the costs for buyers of owning their first home have reduced over the past twelve months. The average price at which buyers are purchasing their first home fell from £155,745 in November 2014 to £148,385 in November 2015, representing an annual price drop of 4.7% – or £7,360. November 2015 was also the first time that the average purchase price for a first-time buyer home has fallen on an annual basis, since March 2013.
This purchase price drop for first-time buyer homes stands in contrast to the annual trend for the overall property market. The latest LSL Acadata House Price Index reveals that, across England and Wales, the average value of all property rose by 6.0% – or £16,446 – and now stands at £290,640.
Adrian Gill, Director of estate agents Your Move and Reeds Rains, said: “First-time buyer numbers have enjoyed a strong twelve months. Despite a shaky start at the beginning of 2015 – as sluggish real-terms pay rises and worries about the health of the economy held back some – first-time buyers recovered their confidence in time for Christmas. They aren’t yet surfing on the rising tide of the British property market, but they have learnt to swim to catch up.
“There are a number of factors behind these solid figures. The effect of Government stimulus packages, such as the Help to Buy scheme, is one factor, while the lure of lower interest, higher LTV lending is another. What is perhaps a more important factor however is that over 2015 first-time buyers have become increasingly cost-savvy and determined when it comes to finding their ideal home.
“The days are over when those who wanted to get a foot on the ladder would take a look in an estate agent’s window, before giving up due to property price panic. Instead, first-time buyers are now doing their research – weeding out the best value-for-money properties in their desired area – and driving a hard bargain to get what they want. They deserve to end the year with the quiet confidence that their determination has paid off.”