In February, the UK property market clocked only 347,000 first-time buyers, the lowest figure in 20 years. While this number is slightly better when compared to 331,374 a year ago, it still is well below the 700,000 mark achieved in 2004/05. It should be noted that the volume of first-time buyers has a direct bearing on the prices and activity in the property market. Hence, the sharp decline in this regard is seen by market analysts as a direct indicator of the problems faced by the UK property market.
There are apprehensions that unless more financing is made available by the mortgage sector, UK government’s tactics such as stamp duty holiday for properties valued at under £250,000 will have little effect in the short to medium term.
Also, a major reason for newbie buyers shying away from the market is the increased deposit amount being demanded by many mortgage lenders. Lower deposit amounts, higher liquidity and more promotions for first-time buyers are being viewed as the measures to usher in more fresh entrants into the market.
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