First time buyers in London, undeterred by property prices rises have reached a new annual high with registrations up 55.3% annually according to new research from haart.
Latest mortgage data shows first time buyers now make up 46.4% of all mortgages written helping to buoy the national property market with a 21.3% increase in property sales.
The average UK first time buyer property price has increaseds 13.3% annually against a national property price increase of 7.9% annually to £191,375.
Paul Smith, CEO of haart says: “Home owners across the UK, who have on average accumulated equity of over £14,000 in their property over the past year, are expected to take advantage of their growing assets by remortgaging or downsizing this spring. The downsizers will ease the current shortage of supply which will help to quell rising house prices. The increase in equity is now more than £90,000 annually in London. The UK market is buoyant with property sales up by 21.3% and new buyer registration up 32.3%. First time buyers are undeterred by property price rises and are now at their highest level in London over the past 12 months as banks continue to support lending to this group of buyers.
“The Chancellor’s deaf ear to the myriad of calls from industry to reform Stamp Duty in the Budget is at best disappointing and at worst will perpetuate a dysfunctional housing market. In one fell swoop he could have increased the supply of homes for sale and capped rising house prices helping every level of the housing ladder. Instead he’s turned a blind eye and given nothing to the majority of homebuyers and sellers rather than throwing them a lifebelt.”