First-time buyer activity has seen significant growth in the UK in the last 12 months, a new report has shown, as more and more people are now putting their foot on the property ladder for the first time.
According to data published this week by Connells Survey & Valuation, the rate of increase for valuations carried out on behalf of first-time buyers now stands at 30 per cent year on year. Activity in this sector was also seen to have climbed by as much as two per cent in November when compared to October.
As well as growing in its own right, the data also indicates that activity in the first-time buyer market is outshining activity in the property sector as a whole. The rate of growth in valuations carried out for first timers to the property ladder was two per cent higher than the market as a whole for the year to the end of November, as well as being 26 per cent higher than that for house movers.
According to John Bagshaw, corporate services director of Connells Survey & Valuation, said that the main reason we are now seeing more people come onto the ladder for the first time is that many are trying to beat any potential rises in the base rate in the new year.
An interest rate increase has been feared for some time in the UK, but as it remains at its historic low, a growing number of people are confident of getting on the ladder in time to beat the inevitable and eventual rise.
"While any increase to the base rate will likely be slight, it could be enough to persuade cash limited and price sensitive first time buyers to act sooner rather than later," Mr Bagshaw stated.
He also went on to say that at the moment, people are looking to take advantage of a number of government schemes for first timers, such as Help to Buy, while they last, which is also helping increase activity.