Categorized | Finance and Mortgage

The Number of First-time Homebuyers Hits New High

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The number of first-time homebuyers in the United Kingdom hit its highest level in eight months. Roughly twenty-five percent of homebuyers in January were first-time buyers, as they rushed to buy a home before the stamp duty holiday.

 

Buying a home prior to the stamp duty holiday is crucial for those looking to buy a home for the first time, as its arrival will cut the first-time buyer threshold in half from two hundred and fifty thousand pounds to one hundred and twenty-five thousand pounds.

 

Economists worry that once the stamp duty holiday arrives, the number of buyers will plummet. They fear that it will send the housing market into a tailspin. The stamp duty holiday takes place in March.

 

Economists are pushing for other programs benefitting first-time homebuyers, such as tax exemptions, to replace the stamp duty.

 

The month of January was certainly a strong one for the residential real estate market in the United Kingdom. Approximately sixty-four thousand homes were sold, which marks the best-recorded month since January of 2008.

 

Plans are currently in place that will require first-time buyers to put down larger deposits in order to buy a home. Residential real estate market analysts believe that such restrictions will hinder the performance of the market, as it will push away young people from considering buying.

 

With that sound, however, they do believe that the government in the United Kingdom must act to prevent the growth of a housing bubble that could cause a second crash to the residential real estate market.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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