First time buyers return to the UK market

First-time buyers are starting to return to the UK housing market, their confidence boosted by slowing property prices, research shows. Those taking their first steps on the property ladder accounted for 40 per cent of total buyers last month - up 3pc on the previous month and the highest proportion this year, according to Spicerhaart Financial Services.

Its index, based on a sample of 1,000 mortgages arranged at its 250 estate agency branches across the UK, also shows that fixed rates remain the most popular, but a growing number of borrowers are taking out variable rate loans.

Some 81pc of the mortgages arranged were fixed rate, but variable mortgages increased for the second consecutive month, rising to 19pc of loans in August from 14pc in July.

Products tracking the base rate were chosen by 16pc of borrowers - the highest percentage since this time last year - pointing to a growing belief among homeowners that interest rates have peaked or will do soon.

Steve Cox, operations director of Spicerhaart Financial Services, said; "It is encouraging to see these early signs of the first-time buyer share picking up again, as these buyers are a vital driving force in the housing market."

Courtesy: Gulf Daily News

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