Vendors should always be aware of who the most likely buyer for their property is. Changing trends mean that the market doesn’t always stay the same and that the most likely buyer today may not be the most likely buyer in years to come. The current trend for buyers in the UK sees first-time buyers coming to the fore and a study undertaken by UK Finance on the most recent mortgage lending figures shows this.
There is close to six times the number of mortgage approvals for first-time buyers as there is for landlords. Many landlords are looking to exit the buy-to-let market, which may force some tenants into the property market, but it should lower the competition for first-time buyers.
Vendors need to consider who is likely to buy their property
Vendors should be aware of this change. With more first-time buyers looking for property, this is the market to focus on. It is important that vendors know who is looking to buy a home because this allows them to present and prepare their home in the most appropriate manner.
While there will be some people viewing the fact that there is almost six times the number of mortgages being approved for first-time buyers over landlords as a positive thing, if it means that there is a fall in the number of overall buyers, that will be a concern. A homeowner will not be too concerned about their buyer being a landlord or a first-time buyer, they just want to find a buyer.
Ups and downs of the property market
In July, a total of 31,400 mortgages for first-time buyers were completed and in the same month, there were 5,500 buy-to-let loans completed. These figures represent an increase of 1% for first-time buyers but signify a fall of 14.1% for landlords.
The Director of mortgages at UK Finance, Jackie Bennett, said; “The residential remortgaging market saw its strongest July in over a decade as home owners pre-empted the latest Bank of England rate rise by locking into attractive fixed-rate deals. There was also considerable growth in remortgaging in the buy-to-let sector, showing that while recent tax and regulatory changes are impacting on new purchases, many existing landlords remain in the market. The number of first-time buyers has returned to modest year-on-year growth.”
The Chief Property Analyst at Yopa, Mike Scott, released a statement saying; “This is the strongest remortgaging market for a decade, presumably driven by borrowers who want to lock into current low interest rates before they rise further. However, this is unlikely to have much effect on the housing market, since it’s not money that will be used for buying a house. Government initiatives such as Stamp Duty relief for first-time buyers and the Help to Buy scheme may be helping to boost the number of first-time buyers.”
If you are looking to sell your home, speak to us and we will offer guidance on what is the best way to promote your property. If you are looking for assistance in Stockport, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html