The estate agency and mortgage group have reported that the number of first time buyers is increasing.

The group has predicted that the amount of first time buyers increased by 15% in the month of April, and that in the first quarter of 2013 that there were nearly 10,000 more first time buyers than in the same period the previous year.

The findings used information from estate agent brands Your Move and Reeds Rain, that indicated that there were more than 20,000 first time buyers in April, up nearly 3,000 from March.  
 
Price of property bought by first time buyers rose around 2% in April (on average) to a high of £138,632 – 12.1% more than in April 2012. As a consequence first time buyers are needing to find larger deposits and, even with low interest rates,  are faced with higher monthly mortgage payments.  

David Newnes, director of LSL Property Services, owners of estate agents Your Move and Reeds Rains, said: “Mortgage rates may be at record lows but repayments are equal to a larger proportion of the average first-time buyer’s wage.
 
“The size of the deposit they must save before they can purchase has increased both in monetary value and as a proportion of wage – a second blow for potential buyers that is large enough to knock many out of the ring and prevent them from buying.”
 
“Schemes like to Help to Buy are designed to launch a counter-offensive on deposit requirements, but the scheme may actually inflate property prices, so may turn out to be counter-productive.”
 
The age of the average first time buyer in April 2013 was 30 and with earnings of £33,268 per annum.
 
Property types that were most popular with first time buyers were  3-4 bed houses, with around half wanting at least three bedrooms. Around 30% of first time buyers were looking for houses with two bedrooms – and this was the 2nd most sought after property type.

Flats came in third for first time buyers, with around 20% of first time buyers looking to purchase a flat in April. Flats therefore are proving to be most popular for 2nd home owners and those wishing to down size.
 
Nearly 60% of first time buyers expected to remain in their properties for five years or more.


www.jonathanbraddick.co.uk
www.architectdevon.com
www.flatsdevon.com
www.architecturesouthwest.co.uk
Article content courtesy of estate agentstoday.co.uk