As buy-to-let lending falls, an increasing number of first-time buyers have secured their first homes as indicated by a 7.4% upward rise in sale figures for 2017. This increase in the number of first-time buyers is the highest level observed for over a decade – which is believed to be driven by a combination of factors. These include the government’s help to buy scheme; the removal of stamp duty land tax for first-time buyers from November 2017; lower deposit requirements and relatively cheap mortgage deals as the UK base interest rate remains respectively low at 0.50%. Interesting, the average first-time buyer in the UK is 30 years of age who has a yearly income of £41,000 according to data provided by UK Finance.
Clearly, first-time buyers are taking advantage of the reduced lending for buy-to-lets which lowers the overall competition for homes; whilst also taking advantage of paying no stamp duty land tax for their first property.
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