The amount of first time buyers has escalated by 22 percent in the year 2014. An estimated number of 326,500 buyers bought their first property in 2014, while only 268,500 buyers in 2013.
Prior to the start of financial crisis, that was the highest total since the year 2007.
The upsurge has been produced by a number of factors, including: the Help-to-Buy scheme, the enhanced mortgage rates, and the modifications to the stamp duty tax.
Mortgage affordability has significantly developed in recent years, with the percentage of disposable earnings dedicated to mortgage payments by a first-time buyer dropping to 32% in the third quarter of year 2014. It has also enhanced throughout the past few years, which really stirred the market.
The government’s HTB or Help-to-buy Scheme which allows people to deposit for as little as 5%, also contributed to the increase in number of first time buyers.
Modifications to the stamp duty tax have also facilitated potential buyers. The process used to compute the amount of stamp duty a customer is required to pay when buying a property has been altered.
Subsequently, previous buyers that couldn’t afford to buy some properties, because of high stamp duty costs, have a better variety of properties to select from.
The Help-to-Buy scheme, the improved mortgage deals, and the stamp duty modifications most definitely triggered the upturn.