New data from Your Move & Reeds Rains has highlighted that during February, transactions for first-time-buyers hit 21,000 - a rise of 6.6% annually.
Adrian Gill, director of estate agents Your Move and Reeds Rains, had this to say: “February is a traditionally quiet period for the first-time buyer market. The month sits awkwardly between the New Year property market rush and the spring-summer activity high. However, beyond that seasonality, these figures demonstrate the strong, steady underlying growth that comes with growing first-time buyer confidence.
This optimism may begin to reveal itself more clearly in March, when an Easter uplift may sweep away any residual doubts among some first-timers. While the more general mismatch between buyers and sellers will continue to exert upwards pressure on prices, a combination of pluck and poise from first-time buyers will ensure that this does little to impact the overall trend of growing demand at this end of the market.”
The costs of buying and owning a first home have remained broadly stable in February, with lower borrowing costs balancing larger prices and deposits.
February’s average mortgage rate represents the lowest mortgage rate for first-time buyers in over five years.
High LTV lending also remains strong, with February’s average ratio reaching 82.5% – a figure that is high relative to the average LTVs recorded in 2014/15.