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You can find the current article at its original source at https://www.theguardian.com/business/2018/jul/12/first-time-buyers-on-the-rise-as-buy-to-let-mortgage-market-falls
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| Version 1 | Version 2 |
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| First-time buyers on the rise as buy-to-let mortgage market falls | First-time buyers on the rise as buy-to-let mortgage market falls |
| (14 days later) | |
| The number of first-time buyers rose in May while the number taking on new buy-to-let mortgages fell, in a sign that government policies and tax changes are rebalancing the housing market. | The number of first-time buyers rose in May while the number taking on new buy-to-let mortgages fell, in a sign that government policies and tax changes are rebalancing the housing market. |
| There were 32,200 new mortgages completed for first-time buyers over the month, 8.1% more than in May last year. The £5.4bn of new lending was up 12.5%, according to figures from UK Finance, a lobby group for the financial services industry. | There were 32,200 new mortgages completed for first-time buyers over the month, 8.1% more than in May last year. The £5.4bn of new lending was up 12.5%, according to figures from UK Finance, a lobby group for the financial services industry. |
| Bank of England should aim to freeze house prices for five years – report | |
| The average first-time buyer in the UK is 30, has a gross household income of £42,000 and takes on a loan of £142,452 at a loan to value of 85%. Government schemes such as help-to-buy and shared ownership have helped some people get on the property ladder who would have otherwise been unable to afford to. | The average first-time buyer in the UK is 30, has a gross household income of £42,000 and takes on a loan of £142,452 at a loan to value of 85%. Government schemes such as help-to-buy and shared ownership have helped some people get on the property ladder who would have otherwise been unable to afford to. |
| However, the number of new buy-to-let mortgages fell by 9.8% in May compared with a year earlier to 5,500. Lending was £700m, 22% lower than in the same month last year. | However, the number of new buy-to-let mortgages fell by 9.8% in May compared with a year earlier to 5,500. Lending was £700m, 22% lower than in the same month last year. |
| “The mortgage market is seeing a pre-summer boost, driven by a rise in the number of first-time buyers and strong remortgaging activity,” Jackie Bennett, the director of mortgages at UK Finance, said. | “The mortgage market is seeing a pre-summer boost, driven by a rise in the number of first-time buyers and strong remortgaging activity,” Jackie Bennett, the director of mortgages at UK Finance, said. |
| “Meanwhile, purchases in the buy-to-let market continue to be constrained by recent regulatory and tax changes, the full impact of which have yet to be fully felt.” | “Meanwhile, purchases in the buy-to-let market continue to be constrained by recent regulatory and tax changes, the full impact of which have yet to be fully felt.” |
| The figures suggest changes to stamp duty introduced by the government in April 2016 are cooling on the buy-to-let market. Anyone buying a second home for any reason now has to pay a higher rate of stamp duty than someone buying a property that will be their main home. | The figures suggest changes to stamp duty introduced by the government in April 2016 are cooling on the buy-to-let market. Anyone buying a second home for any reason now has to pay a higher rate of stamp duty than someone buying a property that will be their main home. |
| Despite the rise in first-time buyers in May, Bennett said some potential buyers were still struggling to get on to the property ladder. | Despite the rise in first-time buyers in May, Bennett said some potential buyers were still struggling to get on to the property ladder. |
| “Affordability remains a challenge for some prospective buyers and this is reflected by a gradual increase in loan to income multiples,” she said. | “Affordability remains a challenge for some prospective buyers and this is reflected by a gradual increase in loan to income multiples,” she said. |
| The number of people moving home also increased in May, with 31,100 new home-mover mortgages completed, up 4.4% compared with a year earlier. The average home mover is 39, has a gross household income of £55,000 and a loan to value of 73.6%, according to UK Finance. | The number of people moving home also increased in May, with 31,100 new home-mover mortgages completed, up 4.4% compared with a year earlier. The average home mover is 39, has a gross household income of £55,000 and a loan to value of 73.6%, according to UK Finance. |
| Jonathan Samuels, the chief executive of the property lender Octane Capital, said May’s lending data was a “perfect snapshot” of the changes to the UK housing market in recent years. | Jonathan Samuels, the chief executive of the property lender Octane Capital, said May’s lending data was a “perfect snapshot” of the changes to the UK housing market in recent years. |
| “First-time buyers are in the ascendancy while amateur landlords are beating a fast retreat. What activity there is within buy-to-let is primarily the remortgaging of existing portfolios or properties in order to maintain some kind of margin. | “First-time buyers are in the ascendancy while amateur landlords are beating a fast retreat. What activity there is within buy-to-let is primarily the remortgaging of existing portfolios or properties in order to maintain some kind of margin. |
| “While professional landlords and institutional investors remain active, amateur landlords are fast becoming an anachronism.” | “While professional landlords and institutional investors remain active, amateur landlords are fast becoming an anachronism.” |
| Mortgage lending figures | Mortgage lending figures |
| First-time buyers | First-time buyers |
| Housing | Housing |
| Stamp duty | Stamp duty |
| Housing market | Housing market |
| Property | Property |
| Mortgages | Mortgages |
| news | news |
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