The number of first-time buyers increased in the second quarter of this year, as buy-to-let tax changes contributed to slowing investor activity.

Brighter times for first-time buyers as buy-to-let activity slows 

According to new data from UK Finance (formerly CML), first-time buyer numbers jumped in the three months to June 2017, while buy-to-let activity cooled.

In total, first-time buyers borrowed £14.8 billion during the three months to June, an 18% increase on the last quarter. But of the three months, June saw the highest levels of first-time buyer activity.

It seems the government’s aims to support first-time buyers by introducing measures which curb investor activity is working.

These measures include the changes to mortgage interest tax relief and the extra 3% stamp duty which impacts anyone buying an additional residential property.

UK Finance reports an increase in the number of home movers in the second quarter, while June was also a strong month for the mortgage market.

Paul Smee, Head of Mortgages at UK Finance, said: “Buy-to-let activity remains subdued compared to its 2015 peak but consistent month-to-month since the Stamp Duty changes in April 2016.”

He continued: “But there are also signs of a softening market and we are not anticipating that this performance will be sustained in the second half of 2017.”

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About the author

Nicolas Holmes

Nick joined Robert Holmes to inject fresh ideas and help grow the New Homes department of Robert Holmes as well as helping to inject technology into the business and to grow its client base. Together with one of the Directors Nick is in charge of all Development opportunities that Robert Holmes deals with along with sales. Aged 40, he provides succession together with the two existing directors. Nick has always been focused on building client relationships and sales. He built up his own gallery in Chelsea, where he had a loyal following of customers and artists.

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