The number of first time buyers last month reached its highest level since 2007 as increased availability of high loan to value mortgages helped new entrants to the market, according to Britain’s largest estate agency chain. This is echoed locally by Rugby estate agents Cadman Homes who are seeing properties sell for strong money, and in popular areas of Rugby properties are even selling above the asking price.
LSL showed there were 31,400 sales to first-time buyers during March, the highest figure since the market was near its peak six and a half years ago. The figures, based on transactions at the chain’s branches and the latest data from mortgage lenders, confirm the strong start to the year reported by other indices. In Rugby property is also selling fast and this means estate agents like Cadman Homes are short of stock. Properties are selling fast, and this has created a lack of supply of property in the Rugby area.
LSL said sales to first-time buyers had been supported by the government’s Help To Buy scheme which has made 95% mortgages more readily available. As a result of the scheme, and improved conditions for lenders, the average loan to value has increased from 80.6% in March 2013 to 83.5%. Cadman Homes are also seeing a much higher percentage of mortgages being agreed, with buyers snapping up property in the Warwickshire town. There is also a resurgence of demand from investor buyers, looking to exceed the yields they get on funds held at the bank.
This means that despite a 5.7% rise in the average first-time buyer house price since over the year, to £143,906, the average deposit has fallen to a three-year low of £23,802. Cadman Homes are reporting that their mortgage advisors are seeing a lot more clients and getting a lot more agreements from lenders.
As a result property is selling quickly, and for strong prices, despite this there is a massive lack of stock locally and the family owned, local estate agents are appealing to potential sellers to contact them if they are thinking of selling in the next 3-6 months. Cadman Homes are based in Rugby town centre, and can be contacted 24/7 on 01788 560 905 or you can email email@example.com for a free appraisal of your home and the local market.