A number of factors - including cheaper mortgages, a rise in first-time buyers and more choice - have combined to create a positive outlook for the property market. The Bank of England’s recent decision to lower the base rate to 0.25 per cent has encouraged eight of the UK’s ten largest mortgage lenders to lower their standard variable rates, while figures from the Council of Mortgage Lenders show 68,200 loans were taken out by first-time buyers in June, an increase of 26 per cent on May and eight per cent on June 2015.
A rise in supply is also helping buyers, with Rightmove reporting the average estate agents had 61 properties for sale on its books in July, up from 60 in June and 59 in May. Kevin Shaw, national sales director at property specialist Leaders, says there has been a notable uplift in the property market in recent weeks, with many buyers and sellers enjoying a renewed sense of confidence following the result of the EU referendum.
“A reduction in mortgage rates and more loans for first-time buyers is great news that will help to get Britain moving,” Kevin explains. “It is clear that people are using the summer as an opportunity to make their next move. With Rightmove figures showing a rise in available stock and our own statistics revealing an increase in the number of new properties brought to the market, buyers are benefiting from more choice.”
“While the precise impact of Brexit is still unknown, it has not yet had an effect and it is business as usual for the property market. After all, people still need to take their next step, find a home for their family or buy for the first time, so we expect activity to remain strong.”
The latest findings also mean more first-time buyers are getting on the property ladder and doing so is becoming simpler for young people. Kevin adds: “Supporting first-time buyers is key to creating a healthy market. By allowing people to buy their first property, others are able to quickly sell their homes and take their next step up to a property that meets their needs. “It is encouraging to see that first-time buyers are able to more easily access mortgages and repayments are now more affordable due to the fall in rates.”
For information and advice on selling or buying a home, contact your local Leaders branch or visit leaders.co.uk.