The new year has kicked off with some surprisingly good news for people looking to get on the property ladder.
According Rightmove, there are more homes available for first-time buyers and the monthly price increase in this sector is now at a near standstill.
Rightmove said there was a 6.6% year-on-year increase in the available number of two bedroom or fewer properties, the highest since 2007.
There was also a slight rise in first-time buyer prices of 0.1% to £177,261, suggesting the impending stamp duty charge could be having a “calming influence sooner than expected”.
Miles Shipside, Rightmove director, said: “Encouragingly for first-time buyers there’s more fresh choice with more property coming to market in their target sector. With their asking prices pretty much the same as a month ago, perhaps the knock-on effects of the more punitive landlord tax regime have arrived early and they now face a dilemma over whether to buy now or wait to see if prices drop in this sector over the next few months.”
House prices rose by 0.5% (£1,509) in January to £290,963 over the past month. While activity in the market is traditionally slow at this time of year, the increase represents the second highest Christmas/New Year period rise since 2007.
The rise comes following two months of decline, which saw prices fall 1.1% in December and 1.3% in November.
Rightmove reported a surge in online activity with visits up 21% in first working week of 2016 compared to same period in 2015
Shipside said: “Perhaps because of the increased competition among sellers and a keenness to attract buy-to-let investors before the April deadline, prices have hardly increased month-on-month for properties with two bedrooms or fewer.
“In this stock-starved era it will come as a relief to first-time buyers that their negotiating power may already be improving because the forthcoming tax changes, and there is a window of greater choice as more owners of smaller properties try to sell.
“Rather than waiting until later in the year, having a good look around now while choice is up and interest rates remain unchanged could get you onto the ladder sooner and at an acceptable price. For several years buy-to-let investors have been enticed by high tenant demand and attractive returns, but as their window of opportunity starts to close it already appears to be opening wider for first-time buyers.”
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