Anyone looking for positive signs in the UK property market will take pleasure in knowing that more first-time buyers made their way onto the property market in January than in any January since 2007. This dates to before the big crash and is being taken by some as a sign that there is positivity for buyers. A combination of low-interest rates and the stamp duty cut, as announced in the Autumn 2017 Budget, have been cited as having an influence on the increased number of first-time property buyers.

According to figures provided by UK Finance, 24,500 first-time buyers purchased property in the first month of 2018. This is an increase of 7% on the 2017 figures and it is the highest the figure has been in 11 years. The total value of the loans provided to these buyers came in at £4 billion, which is an increase of 11.1% on January of 2017.

There is positivity in the property market

When you take on board the fact that January is traditionally a weak month in the property market, there is definitely an air of positivity about these figures. Whether there is an indication that 2018 is going to be a strong year for property sales or it is just a one-off remains to be seen but there is no denying that fewer people are predicting a poor year ahead, certainly much less than there were in the final weeks of 2017.

This isn’t the only sign of positivity in the property market so far this year. Let’s not forget that when their figures indicated that property prices rose in January of 2018, Nationwide admitted that they were surprised at the showing, with the organisation having tipped a slower rate of growth or even a decline in sales figures.

The Government is claiming an assist for first-time property purchases

As you would expect, the Chancellor has been quick to promote the benefits of the stamp duty cut and the Government will clearly claim any increase in first-time buyers purchasing property as being down to them. Philip Hammond has already claimed that 60,000 households have taken advantage of the cut, which was only introduced in November of 2017.

At the time of the announcement, the Office for Budget Responsibility, the OBR, raised issues with the cut, believing it would lead to an increase in property prices. However, the OBR has recently announced that the scheme has been utilised for more high-priced buys than would have been expected and that the level of tax relief has been of a more generous nature than would have been anticipated.

If you are looking to step onto the property ladder, come and speak to the local property specialists. You can give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html