Property Market Sees Boost In FTB Figures
The property and construction market will be able to benefit from the news that first-time buyer (FTB) numbers are on the rise.
Indeed, there could be greater demand for concrete reinforcement in Leeds to be used to build more homes after UK Finance’s Mortgage Trends Update recently revealed FTB figures have hit their highest level since June 2017.
According to the findings, there were 35,500 FTBs who completed mortgages in August 2018, representing the greatest monthly level in over a year.
As well as there being two per cent more FTBs entering the property market in August 2018, the amount of money lent to this group of buyers increased by 5.2 per cent over the 12 months.
Director of mortgages at UK Finance Jackie Bennett stated: “Overall house purchase completions remain stable, driven largely by the number of first-time buyers which reached its highest monthly level since June 2017.”
FTBs are typically 30 years old when they step on to the housing ladder, according to the research, and have a household income of £42,000.
Comparatively, homeowner movers are 39 on average and have a household income of £57,000. This type of buyer did not generate as much activity as FTBs in August, dropping in number by 2.3 per cent from the same month in 2017.
Ms Bennett stated this could have been because many homemovers took advantage of cheaper mortgage deals before the Bank of England increased its base rate from 0.5 per cent to 0.75 per cent in the summer.
Recent figures from the Office for National Statistics also showed a positive month for August in terms of housing purchasing. It revealed non-adjusted residential transactions increased by 12.9 per cent from the previous month, and 3.9 per cent from August 2017.