Financial Reporter have stated that 2016 could be the ‘year of the first-time buyer’ encouraged by low interest rates, initiatives such as Help to Buy, and buy-to-let investors facing increasingly adverse taxes.

Government initiatives and low interest rates are aligning with more property choice for first-time buyers, with 10% year-on-year jump in the number of two beds or fewer coming to market, according to Rightmove.

Director of Rightmove Miles Shipside said “For the second month running the highest increase in supply of homes coming to market is properties with two bedrooms or fewer, typically the target purchase of first-time buyers or buy-to-let investors. There is a 10% uplift in new supply compared to the same period in 2015, meaning all regions have more fresh choice in this sector than at this time last year. Regions outperforming the national average with over 10% more newly-marketed homes with two bedrooms or fewer are London, East, South East, South West, West Midlands, and Yorkshire & the Humber, and if this trend continues the increased competition among new sellers may help to temper price rises. More and more agents are reporting a healthy return in first-time buyer numbers, and with the cards increasingly stacked in their favour 2016 could prove to be the year of the first-time buyer.”

Property prices coming to market has also hit a new record less than two months into the new year’s seasonal upturn. New seller asking prices have increased by 2.9% (+£8,324) this month, in spite of some improvement in the balance between supply and demand.

There are also signs of fresh supply increasing with the volume of new properties coming to the market at the highest level since the credit crunch of 2008.

However, only four regions saw over 5% year-on-year average uplift – London, South East, South West and Yorkshire & the Humber. In the West Midlands new stock is down by 0.3% and Wales and the North West have seen an uplift of 1% or less, restricting fresh choice for buyers in these regions.

 

Source:http://www.financialreporter.co.uk/finance-news/is-2016-the-year-of-the-first-time-buyer.html    15/02/2016