At the start of 2014 the number of first time buyers taking out mortgages was up by 38% in the 12 months to January and recent figures from the National Association of Estate Agents indicate that first time buyers continue to remain a strong presence in the housing market.
Nearly a third of all homes sold in February by members of the National Association of Estate Agents were sold to first time buyers.
Jan Hÿtch, President of National Association of Estate Agents, was quoted as saying: “Confidence may be increasing, but the lack of properties entering the market has slowed considerably and is a real concern that needs to be addressed now, particularly for those already on the housing ladder who want to move onwards. With Help-to-Buy making it easier for new purchasers with low deposits to buy a home, the appetite for buying in this price range, combined with the diminishing supply of first time buyer properties, could drive property prices up further in this sector.”
Help to Buy has provided first time buyers with the option of purchasing a property with a smaller deposit, which has made saving a deposit much easier for those buyers looking to get onto the property ladder.
The Help to Buy equity loan scheme has also been extended until 2020, the scheme was originally set to end in 2016 however there is now a greater timescale to consider a new build using Help to Buy.
With more first time buyers looking to take their first steps to purchasing a home, there is an opportunity for sellers looking to market their homes.