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First Time Buyers Up in November
November brought a rise in the number of first-time buyers as part of an ongoing trend suggesting first-time buyers have returned to drive on a flagging housing market.
A report from Connells Survey and Valuation suggested total valuations rose 3% in November for all buyers and 7% for FTBs from October - up 73% on last year.
First-time buyers represented 29% of all Connells' valuations in November, the highest proportion since August.
Connells Survey and Valuation spokesman, John Bagshaw, said: "In November, first-time buyers exploited a short window of opportunity as rates for higher LTV mortgages improved briefly. With house prices steadily declining, affordability has improved for new buyers, many of those able to secure mortgages have been acting quickly to complete before Christmas."
The Chancellor's decision not to extend the Stamp Duty holiday for first-time buyers is likely to bring a buying activity spike before March. he said.
Bagshaw added: "But in the long-term, the recovery of transactions will be led by lenders' ability to unlock the lower tier of the market. The new mortgage indemnity scheme is a step in the right direction but the threat of the Eurozone crisis - combined with the abolition of the Stamp duty holiday - may undermine its impact in the coming year."
Remortgage valuations were also up 12% in November at 20% of all applications against 11% a year ago.
However, mortgages rates have begun to trend upwards as banks find it harder to secure funding, which Connells predicts will lead more borrowers into longer-term, fixed rates to combat the risk of payment rises.
Bagshaw said: "With the ongoing economic uncertainty, and constrained mortgage market, house prices have faced downward pressure in recent months, and this has reined in the number of vendors looking to place properties on the market. However buy-to-let investors are seeing improving yields and many are looking to secure bargains before prices rise again."
