Demand for Mortgages High Despite Rising Prices

More people buying first-time homes than before pandemic

Since last year, demand for first-time homes has risen by 11%, according to new figures from Rightmove. But mortgage rates and property prices are still significantly higher than before the pandemic.

Rightmove has put the increase in demand down to a determination amongst young people to get on the property ladder, even if the costs are higher. This is reflected in the research released, which shows that first-time buyers are paying £200 more a month compared to a year ago.

At the same time, the average asking price for first homes has risen to a record high of £224,963. But the head of mortgage products at Rightmove has said that those who are able to raise the deposit needed are “still finding buying compelling”.

Stability has “brought buyers back” to the housing market

There is some optimism for the housing market as mortgage rates have started to stabilise since last September’s mini-budget, a move which led to mortgage deals being pulled across the country.

A spokesperson for Savills commented on this improvement, saying: “A bounce in mortgage approvals reflects an increasingly stable and competitive mortgage market.”

He went on to say that “the ability to better plan prospective mortgage outgoings has brought buyers back”.

It’s expected that this trend of growing confidence amongst first-time buyers will continue as the housing market sees a “modest recovery” over the coming months with borrowing costs falling.

Buying a house remains a “challenge” for first-time buyers

There’s no denying that for a lot of young people, buying a property still feels like a distant reality . Speaking about their most recent study, Rightmove said: “The combination of a new record price and higher mortgage rates than last year means it is a challenge for first-time buyers.”

We know that buying a house can feel like a daunting prospect. Even if you have enough money for a deposit, you might have concerns or questions about the conveyancing process. This is where our solicitors can help.

To find out more, get in touch with our friendly team today. You can call us on the number at the top of the screen or start your enquiry online.


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