Fall In Wolverhampton Landlords Purchasing

Whilst the heatwave of the summer feels like a distant memory now, figures from lenders for August released this morning highlight the UK property market saw the number of first time buyers reached its highest monthly level since June 2017 as the number of landlords purchasing property slumped. The data, released by trade lending body UK Finance which represents over 90 per cent of all mortgage lenders in the country, indicates that there were 35,500 new first-time buyer mortgages completed in August, a two per cent year on year increase. According to UK Finance figures, the average first-time buyer is 30 and has a gross household income of £42,000.

Conversely, there were 6,000 buy to let home purchase mortgages completed in August, a decrease of 13 per cent on the same period last year, and a drop of 20 per cent on lending values year on year. The increase in the number of first time buyers balanced a slight drop in the number of home mover mortgages completed in August, which was 2.3 per cent lower than the same period last year, resulting in the market remaining flat for the month. That said, what today’s data does prove is that whilst this is providing some first time buyers with an opportunity to purchase, given the disparity between the increase in the number of first time buyers and the drop in the number of buy to let purchases to date, there is still some way to go before the books balance. In addition, there is a general consensus within the property industry that a lack of landlords is likely to exert upwards pressure on rents, which could make life harder for tenants who are already stretched in terms of monthly finances.

Buy to Let remortgaging saw relatively strong growth in August, due in part to the number of two-year fixed deals coming to an end. “This suggests that while new purchases in the buy to let market continue to be impacted by recent tax and regulatory changes, many existing landlords remain committed to the market.” An increase of first time buyers is: Positive news for the Wolverhampton property market, as they do underpin the housing ecosystem. Remaining pragmatic in terms of how this or any other changes may assist the plight of first time buyers, Jeremy Leaf, former RICS residential chairman suggests, “It remains to be seen whether the Budget actually encourages more potential first time buyers to take the plunge before rising rents, prompted by shortage of property to let, makes deposit-saving even more difficult.” Contact Apple Finance for Free mortgage advice.01902 213201

 

 

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