Early data is showing a “steady start” to 2017’s housing market, as well as a “window of opportunity” for first-time buyers who have more choice and negotiating power. The Rightmove statistics report a 0.4% monthly increase in the price of property coming to market – very similar to the 0.5% rise recorded in the same period 12 months ago. Early indicators of housing demand also appear robust, with Rightmove traffic compared to a year ago up by 5% since Boxing Day, which is traditionally when movers start to search en masse.
Brian Murphy, Head of Lending at Mortgage Advice Bureau (Holdings) Plc (LON:MAB1), said: “Going forwards, first time buyers may not find themselves in the position of having to compete with a buy-to-let investor for the same property as has been happening over the last few years, which is reflected in Rightmove’s statistic of a 13.2% year on year decrease in BTL purchases. This is likely to be assisted by the current range of 90% and 95% LTV mortgages available at near record lows, coupled with lenders’ becoming increasingly more flexible in terms of lending criteria.
“Anecdotally, last month was busy across our network with many advisers reporting it was one of their busiest months for home purchase mortgage enquiries, which would potentially suggest a ‘down the line’ uptake of activity that we may well see reflected in January and February’s figures, once released. This potentially indicates that, despite the current uncertain outlook for the UK economy, consumers still feel confident enough to consider moving and putting their hard earned cash into bricks and mortar.”
