First Time Buyer Activity ‘Highest In 5 Years’

First time buyer activity rose to its highest rate in five years, accounting for more than a third of overall activity, according to reports.

The latest update from Connells Survey & Valuation highlights that first time buyers dominated the property scene in February, accounting for 36 per cent of activity - the highest level recorded within this segment of the market since July 2011.

Marking an increase on the 28 per cent recorded last February, the rise in activity has been attributed to the near-zero base rate keeping mortgages affordable - gross lending has reached its highest level since 2008.

John Bagshaw, corporate services director of Connells Survey & Valuation, commented that lending to first time buyers continues to rise while the base remains so low, adding: “For those with enough savings for a deposit, now is a great time to buy.”

Conversely, the buy-to-let market declined in February, almost halving when compared with figures from the previous year. The segment now represents eight per cent of market activity - the lowest level recorded in more than five years.

Mr Bagshaw went on to say that stamp duty surcharges had helped first time buyers on to the property ladder at the expense of landlords but added that this may be temporary.

Recent reports suggest housing market activity has remained subdued during the year to date; according to the Royal Institution of Chartered Surveyors, supply and demand for new properties was relatively flat during February, with transactions remaining steady.

Find your new home with estate agents in Durham - get in touch with the H Dowen team today.