First Time Buyer Home Prices Increase Month on Month
In the post period of the new stamp duty applied to owners of second homes, the cost of a house for first time buyers has risen in the past month by more than 6%. According to the latest figures from property website Rightmove, a two bedroom flat in England and Wales has increased in cost for first timers by more than £11,000 when comparing figures from April to May. The average cost of a two bedroom has now reached £194,224.
Rightmove data indicates the prices have gone north due to the surge of buy to let property buying which took place leading up to the April first tax date. The lower end of the property market experienced a property drought which in turn placed pressure on incoming properties to the market.
Miles Shipside of Rightmove commented on the latest data, saying: “It remains to be seen if these prices can be achieved and there may be some over pricing in the market. It is also a reflection of better quality property coming to market in this sector which is now targeting owner-occupiers rather than landlords.”
The spectrum of property types has experienced an increase according to Rightmove. Prices are now higher month on month by 0.4%. However, prices in London were lower compared to the month prior.
Although prices have increased for first time buyers of homes, a remortgage remains a strong play for current home owners. The entire process has now gone online and can be completed in quite a short period of time. Lenders remain keen on offering attractive deals for those who qualify.