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A Quarter of Property Buyers are First Timers
22-02-2012
Author: Steven Michaels
For the eighth month running the first time buyer sector of the housing market has again increased. This is due to buyers making the most of the break from paying stamp duty, according to estate agents.
23 percent of sales in January were first time buyers which is 2 percent higher than in December. This little boost is the highest since May of last year and a definite encouragement to the housing market. Most people are struggling to pay a deposit on a property and are being trapped in the rental sector and it seems these people want to take advantage of the 2 year holiday from paying stamp duty.
However, this break is going to end next month and even though the housing market is slowly on the rise, this change could disrupt the market causing property sales to fall.
The National Association of Estate Agents (NAEA) said that not paying the stamp duty was a “key factor” in getting first time buyers onto the property ladder. They have campaigned for the holiday to be extended however it will still be lifted next month. They stated “We are deeply disappointed that ministers have axed this support for a crucial part of the market which has benefited so many house hunters in getting onto the property ladder.”
HSBC recently looked at the first time buyer loans that had been taken out at the start of the stamp duty holiday and the end of last year. They discovered that half of the loans were used to buy homes that normally buyers would have to pay stamp duty.
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