First time buyers stimulating the market Wednesday, 7th December 2011

According to the latest housing market activity report by Connells, first-time buyer demand drove a monthly increase in mortgage market activity in November.

Following a slight monthly dip in the previous month, the total number of valuations conducted during the month grew by 3% in comparison to October.

A major factor in the increased level of mortgage activity in November, was the uplift in first-time buyer activity.

The highest proportion since August and representing 29% of all Connells’ valuations,
in November, the number of valuations conducted for first-timers increased 7% compared to October.

“In November, first-time buyers exploited a short window of opportunity as rates for higher LTV mortgages improved briefly.
“With house prices steadily declining, affordability has improved for new buyers, many of those able to secure mortgages have been acting quickly to complete before Christmas, John Bagshaw, corporate services director of Connells Survey and Valuation, commented.
“Following the Chancellor’s decision not to extend to stamp duty holiday for first-time buyers, activity will be elevated in the short-term as buyers look to move before March.