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.
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.”
For more on this story, click the link below:
