First-time buyer demand strong despite Brexit

The latest data from UK Finance has shown that the number of first-time buyers entering the UK property market has grown, despite fears of a no-deal Brexit.

Figures from the UK financial services trade body show that 32,640 first-time buyer mortgages were completed in July – an increase of almost six per cent on the previous year’s numbers.

During the same month, lenders completed 32,710 home mover mortgages, which is an increase of 1.4 per cent on the previous year.

Despite the various changes to taxation which have made property investment less attractive, buy-to-let mortgages were also up by 5.5 per cent.

Shepherd Ncube, Chief Executive of estate agents Springbok Properties, 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.”

During the same period, remortgages fell, with just 20,760 remortgages with additional borrowing completed – a decrease of 7.1 per cent from 2018. Where no additional borrowing was involved, the rate of remortgages fell even further and were down by 12.9 per cent in July.

Link: Mortgage Trends

Posted in Wealth Management News.