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First-Time Buyers Growing into the Housing Market for 2019


First-Time Buyers are Looking to Get on the Property Ladder

Latest figures show that over 25,000 houses were purchased by first-time buyers in January 2019, a 5% increase compared to the same period last year according to data published by UK Finance.

Despite property market uncertainty due to the current Brexit climate, first-time buyers have been taking advantage of the housing market as prices in and around London stagnate and fall.

“First-time buyer numbers remain strong and encouragingly, loan-to-values have been consistent so it is not as if they are over-stretching themselves,” Gareth Lewis, commercial director at specialist lender MT Finance remarks.

“With the average LTV around 85%, sensible lending is being done rather than chasing volume.”

Despite Brexit uncertainty and the current effects it is having on the property market, the residential mortgage market has had a strong start to the year says UK finance.

With over 25,000 homes purchased, the average age for the first-time buyer is 31 whilst putting down a 17.8% deposit. Why Hunter Finance thinks the first-time buyer market will soar in 2019.

“The year has got off to a remarkably good start on the lending front despite ongoing political uncertainty. Clearly, people have had enough with situations they can’t control and are getting on with their lives,” said Chief Executive of mortgage Broker SPF Private Clients, Mark Harris.

With the number of first-time buyers continuing to grow in the property market, as well as the highest amount of new builds since 2007, its becoming apparent that property developers should begin to focus on this emerging market.

Existing homeowners are looking to ‘improve, not move’ in this current climate, this has given first-time buyers a unique opportunity to increase their standing in the property market.

“Increased competition within the mortgage market continues to help thousands of buyers with their property plans and ambitions,” said Kevin Roberts, director at Legal & General Mortgage Club.

“With mortgage rates having halved in the last decade, and a growing number of lenders offering 95% LTVs, first-time buyers stand in a particularly strong position.”

“For any would-be borrowers, looking to make the most of the competitive rates and flexibility the mortgage market has to offer, speaking to a mortgage adviser is a wise first move.”

Build the Right Property for the Right Area For Maximum Profits

Although London house prices have been stagnating and falling in parts of the capital, London remains an exciting prospect for first-time buyers. Younger people more attracted to moving to the capital due to job opportunities compared to the rest of the UK. What properties should you build in London?

With a strong start for the first-time buyer market in 2019, what are property developers doing right to encourage first-time buyers to make the climb on the property ladder?

“The continuing trend shown in these figures of first-time buyers taking the place of investors at the vital lower-priced end of the market is very welcoming and confirms what we have seen on the ground lately. Further confirmation of resilience among homeowners who are getting on with buying is also encouraging,” said Jeremy Leaf, north London estate agent and a former RICS residential chairman.

It’s becoming increasingly important for property developers to be cautious in what areas they plan on beginning a property development project.

For example, London is a very big place with several neighbours, so it’s vital that an aspiring or an experienced property developer carries out their research in which areas property buyers are frequently purchasing properties in.

There are other areas across the South of England that Hunter Finance operates in. Which areas should you research? At Hunter Finance, we offer dependable property development finance that’s fast and easy. Apply for development finance today or contact us on 01825 749721 on how we can help you.

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If we can help we will say so, if we can’t we will be able to point you in the right direction or suggest alternative financial vehicles.


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