According to the National Association of Estate Agents, a jump of 10% in first time buyer sales was seen in December.
Apparently, with the buy-to-let housing market falling backwards, house prices have settled and it is now easier for first timer's to get on the ladder.
Since the summer of 2003, first time buyer sales steadily decreased as prices rose. However, after falling to 6% of the purchasing population in November 2003, they rose to 16% in December 2003.
Our View
With house prices at all-time highs it is still very difficult for first time buyers to find property that is both suitable and affordable. Many first time buyers have had to take on bigger mortgages than they really wanted and even possibly borrow from family, in order to get on the property ladder.
Whilst borrowing is fine when interest rates are low, make sure you can afford them when they rise.
Our view is to add on another 2% to 5% to see how affordable the payments would be. If you simply would not be able to afford another 2% interest, think very carefully about purchasing.