There’s no stopping new home buyers at the moment.
The latest First Time Buyer Opinion Barometer from LSL Property Services points to a 42% year-on-year surge in the number of people making it onto the property ladder in February. How many deals does this equate to? Some 22,400 agreements were made by first-time buyers in the period, according to the study.
The number was significantly higher than the 15,800 transactions sealed by first-time buyers in February 2013. Many buyers have rushed to buy homes in anticipation of possible price hikes in the future, alongside the improved access to mortgages.
LSL’s own research among tenants confirmed their growing willingness to buy their own home, with the proportion of consumers expressing a desire to snap up property growing to 96% from 92% in December. According to LSL, more people are expected to consider buying a house over fears that prices will increase in the coming 12 months.
Concerns about a possible pickup in prices are currently shared by 81% of prospective buyers. Just 5% are sure that prices will decline. Meanwhile, only 10% of people renting their accommodation fear they will never be able to become a homeowner, down from 12% in December 2013 and much lower than in December 2012, when one in five tenants thought they would never afford to buy their own home.
Currently, 20% of tenants expect to buy a property in the coming year, while another 48% hope they will move to their own home in the next five years. One in five expects to become a homeowner sometime in the future, although they couldn’t say for sure when.
Are you on the property ladder yet? If not, when do you see yourself buying your own home?