In contrast first-time buyers are benefiting from falling prices, which peaked in November last year and have fallen 1% annually in March 2015. This is one of a number of benefits first-time buyers are experiencing, including Help to Buy, low mortgage rates, cheaper Stamp Duty tax as well as the potential for the Help to Buy ISA.
The number of new buyers and the number of new properties for sale surged in March 2015, by 21.8% and 27% respectively – a seasonal trend across the spring months. The number of new buyers is down 21.5% on an annual basis which reflects that the market in 2015 is not as busy as the exceptional 2014 market.
The number of new first-time buyers coming to market has also surged on a monthly basis, by 17.1%, whereas the volume on an annual basis has fallen significantly.
Along with a decrease in average property prices, the average first-time buyer deposit and average first-time buyer mortgage have decreased in tandem.
The average age of a first-time buyer has decreased to 31.5 years, down from 31.8 years last month.
Paul Smith, CEO of haart, comments: “Our advice to both buyers and sellers has been to enter the property market before heading to the ballot box in May, if they are considering doing so this year. History tells us property prices tend to take a swing upward after a general election and even for those current homeowners upsizing, the increase in price on their new home will be greater than any gains made through sitting tight in their current property.
Our latest data indicates that prospective buyers and sellers have put their ducks in a row and are entering the market in high levels this spring – undeterred by the whispers of market uncertainty. This in turn has driven up UK property prices by almost 1% in a single month and 5.6% annually.
London house price growth has slowed but on average prices are still up on an annual basis in March, driven by unrelenting high demand – 19 buyers are still registered for each new property for sale in the Capital.”
