More first timers buying homes as prices paid falls

More first timers buying homes as prices paid falls

The price of property may be increasing time and again over the last few years, but in the past month there has been an increase in the volume of first timers able to get onto the ladder thanks to a surprise fall in the price they have had to pay to do so. 

According to the latest report released this week by Your Move and Reeds Rains, there was a real rise in first timer activity in March, with the volume of newcomers making purchases increasing during the month by a total of 47.7 per cent when compared to February. 

This meant that in March there were a total of some 32,500 people getting themselves a footing on the property ladder. It was the highest single monthly total recorded in the market at any time since June 2014, showing a real spike in purchases. 

Your Move and Reeds Rains said that the reasons for the rise in March were simple - buyers were having to pay less in key areas of the country to get onto the ladder, while they also experienced lowering in the burden of deposit costs and mortgage payments.

Adrian Gill from Your Move and Reeds Rains said that a lot had been made of the activity in the market in March for second home and buy-to-let purchases, but added that these latest figures showed that even though this was definitely the case, the rise in rental purchases was not at the expense of the lowest rungs of the property ladder. 

He said the economy improving month after month had a big part to play in the number of newcomers on the ladder, but added "what’s really getting those numbers up is the fact that the range of support options available to first time buyers is at last beginning to be recognised and utilised". 

"The Help to Buy scheme is assisting those with limited capital recognise their dreams, while the Government’s offer of cut price homes for first time buyers is easing supply in a part of the market that typically struggles to match roaring demand with constrained supply," Mr Gill added.