New research suggests there is more good news on the horizon for first time buyers. Taxes are changing for landlords, meaning thousands are looking to sell up. So with more houses flooding into the market, first time buyer mortgages will be much more realistic for those looking to jump onto the property ladder.
Landlords selling up
According to the National Landlord’s Association, over 19% of landlords (390,000) are intending to offload their property. And out of this proportion, only 7% are planning to sell to other landlords. Meaning that there is renewed hope for not only first time buyers, but also homeowners who are looking to progress up the property ladder.
Richard Lambert, CEO at the NLA stated ‘These findings sound like positive news for potential home owners. However, not everyone is actually in the financial position to purchase.”
Drop in rental properties
So thinking about this on a larger scale, whilst landlords selling of their properties is a positive thing for most, it is not all good news. For those who are not wanting to get on the property ladder, there is going to be a huge drop the number of properties available to rent. So actually, rental prices could go up due to there being a crowded market.
The NLA has been looking into the issue, and have put together a really interesting article called The Hustle For Homes if you want to have a read. It goes into detail about the relationship between landlords and first time buyers in the market. And how according to UK Finance, the combination of buy to let mortgages and remortgage lending stands at just 15% of the current market.
Increased value of first time buyer mortgages
The Property Industry Eye has also thrown a bit of a spanner in the works regarding this recent news. It seems that whilst the value of mortgages lent to first-time buyers has increase slightly this year, there has been a general fall in the number of first time buyer mortgages being accepted.
So overall, there does seem to be some positive news on the horizon. In summary, more properties are likely to come onto the market for first time buyers. And whilst there seem to be higher value mortgages for first time buyers out there, it is harder to get your hands on them!
Keep staying up to date with Fletcher Longstaff for the latest updates as they happen!
