For any property market recovery, an increase in first time buyers is always used as a positive indicator for the buoyancy of the market. New figures have shown that in July, the number of first time buyers in the market was at its highest level since the recession began.
Despite average house prices for first time buyers being £161,985, 9% more than a year ago, the current market is being deemed the ‘perfect time to buy’. This comes alongside warnings that house prices will continue to rise in the UK, with an expected rise in interest rates at in the beginning of 2016. Wherever possible, all buyers are being advised to fix Mortgage rates for the next five years to reduce costs.
Research conducted by Your Move and Reeds Rains, who looked at a first time buyer tracker, indicates that property sales are up by almost 5%, despite an average required deposit of around £28,000.
More good news comes from research by the Halifax, which shows that buying a first home in the UK is on average £670 cheaper per year than renting a property. To be precise, the data shows that a first time buyer can expect to pay £666 per month whereas a typical rental property could cost up to £722 per month.
The demand for properties in the UK is still outstripping the supply, so as long as new properties continue to be built, and home owning remains desirable, property prices will slowly rise and will help create a more dynamic property market.