Number of first time buyers rises.
According to the Guardian, The number of first-time buyers rose in May 2018 while the number taking on new buy-to-let mortgages fell, in a sign that government policies and tax changes are rebalancing the market.
There were 32,200 new mortgages completed for first-time buyers over the month, 8.1% more than in May last year. The £5.4bn of new lending was up 12.5%, according to figures from UK Finance, a lobby group for the financial services industry.
The average first-time buyer in the UK is 30, has a gross household income of £42,000 and takes on a loan of £142,452 at a loan to value of 85%. Government schemes such as help to buy and shared ownership have helped some people get on the property ladder who would have otherwise been unable to afford to.
However, the number of new buy-to-let mortgages fell by 9.8% in May compared with a year earlier to 5,500. Lending was £700m, 22% lower than in the same month last year.
figures suggest that the changes in stamp duty introduced by the government in April 2016 are cooling the buy-to-let market. Anyone buying a second home for any reason now has to pay a higher rate of stamp duty than someone buying a property that will be their main home.
Despite the rise in first-time buyers in May, commentators said some potential buyers were still finding it very difficult to get on the property ladder. Affordability being the main challenge hence the increasein loan to income multiples.
The number of people moving home also increased in May, with 31,100 new home-mover mortgages completed, up 4.4% compared with a year earlier. The average home mover is 39, has a gross household income of £55,000 and a loan to value of 73.6%, according to UK Finance.
