FTB sales hit post-recession high
First-timer transactions increased by 28% from April’s total of 23,200 as buyers flocked to market before base rates start to rise.
Average FTB mortgage rates fell from 4.19% in July 2014 to 3.44% in July 2015.
Despite the rush typical deposits rose by 10% annually to £27,975 while purchase prices reached £161,985 in July, an 8.9% increase year-on-year.
Adrian Gill, director of estate agents Your Move and Reeds Rains, said: “First-time buyers are experiencing a summer of white-hot activity, unimpeded by rising deposit costs.
“The post-general election bounce has given way to a more stable optimism, as first-time buyers realise that the property market – at least their end of it – is at no immediate risk of being tampered with by the government.
“Rather, incentives attractive to first-time buyers – such as the Help to Buy scheme – are running along steadily, while further low-cost housing development is being encouraged to entice more people onto the ladder.”
He added: “This month’s particularly high transaction rate is also partially due to expectations that the Bank of England may announce a rate rise sooner rather than later.
“The thought of months of rock-bottom mortgage rates being brought to an end is encouraging many wavering first-time buyers to jump on the property ladder before repayment costs shoot up. Some may have held back briefly when considering the rising deposit costs.
“But real wages have been growing too, and first-time buyers are able to shoulder the short-term burden of a slightly higher deposit to spare the risk of losing out on a good mortgage deal.”
London was the most expensive place to buy as first-time buyers needed to stump up a typical deposit of £66,876, while typical property prices stood at £274,868.
The North East and Northern Ireland were the cheapest areas, as first-time buyer prices stood at £109,240 with typical deposit of £17,659 in the North East and £106,176 with a £16,570 deposit in Northern Ireland.