Categorized | International

First Time Buyer Demand Picks Up in UK

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The residential real estate market in the United Kingdom is strongly benefitting from the increased demand of first time buyers. The number of first time buyers entering the market is up by more than forty percent from where it was last January. First time buyers have played a significant role in driving growth in the housing market thus far in 2012.

The number of first time buyers did actually drop month-over-month, but it is important to note than the UK’s residential real estate performance in December was its strongest in over five years. One of the primary factors in driving demand among first time buyers has been the overall affordability of the market. Residential real estate prices and mortgages have never been more affordable, and banks continue to work with potential buyers to provide optimal mortgages.

Another factor that has played a major role in the sudden surge is that many first time buyers are looking to purchase a home before the stamp duty holiday takes place in March. The surge will likely subside following the holiday, though the government’s NewBuy program may help keep the numbers fairly high.

Refinancing has also increased significantly in the United Kingdom. Refinancing applications are up by almost fifty percent when compared to last year’s numbers. Many current homeowners are taking advantage of the low interest rates, so as to cut down on their monthly costs.

The overall performance of the residential real estate market in the United Kingdom is certainly good news for the country, as it has been among those that could possibly be negatively impacted by the looming European debt crisis.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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