Find out what’s happening in the property investment arena both in the UK and internationally
First time buyers still active in London borrowing £3.3 billion to buy bricks and mortar
December 3, 2014Article by Charlotte Ashton
First time buyer activity is an excellent indicator of the health of a nation´s housing market. Those buying for the first time often wait until prices have bottomed out before dipping their toe in the water, creating a surge effect when they finally decide that the time is right.
Looking to London
This is precisely what has happed in London, where the latest figures from the CML have shown that some 13,300 loans were awarded to first time buyers during Q3 2014. The figure is 8% higher than Q2 2014 and 6% more than the same period the year before.
It seems that first time buyers are also setting their sights on more expensive properties in the capital than they were a year ago, with the total borrowing recorded as £3.3 billion – an increase of 11% over Q2 2014 and 16% over Q3 2013.
A pretty penny
The CML figures show that first time buyers in London are prepared to pay a pretty penny for their properties, with an average loan per person of just shy of £250,000. While prices in London outstrip the rest of the UK, there are still some excellent deals to be found – if you know where to look. Ray Withers, Chief Executive of specialist property investment company Property Frontiers, explains,
“London’s market is always an exciting one. Prices there can seem off-putting at first glance for those looking to get on the property ladder, but the key is finding the right area. Right now, Harrow, north west of the city centre, is the place to be.”
Making a saving
Properties such as the Property Frontiers Harrow development, Carnegie House, which consists of studios and one bedroom apartments costing from £210,000 allow buyers to get on the property ladder while avoiding higher stamp duty charges, as for units of £210,000 the rate is just 1%. This can make a huge difference for first time buyers looking to own their own property but lacking a large pile of cash to hand over for fees.
Savvy first timers are looking for just this kind of property – good asking price, low stamp duty and a prime location in one of London’s most exciting areas. Strong transport connections are key, which is another reason that Harrow, which is just 12 minutes by rail from London Marylebone, is so popular.
As the London property market continues to expand, prices are set to continue their upward trend. The advice for those looking to be a part of the capital´s property boom? Buy now while prices are low and be a part of the growing group of global property investors who are making their money work for them in London.