First-time buyer interest on the increase

People looking to buy their first piece of UK property have been looking for more advice in the first weeks of 2012 than they were in any month over the last two years, according to a new report released.

In the report from unbiased.co.uk, it was revealed that people on the hunt for their first properties for sale were making up the majority of requests for advice to do with the property market in January of this year.

Of all property related calls looking for advice, the website said that it had found that 41 per cent were from people who were looking for tips on the best ways to finance their first home, as well as how to go about buying the property.

In December, these kind of enquiries totalled only 36 per cent of the total number of advice enquiries, but they now reached a 23-month high.

This rise could be triggered by an increase in the number of people who are looking to take advantage of the stamp duty holiday, which ends on the 24th March, at which time first-time buyers will need to pay stamp duty on any property they purchase with a value of more than £125,000.

However, while there were gains in enquiries about mortgages for first-time buyers, buy-to-let mortgages saw a drop in requests for advice.

In December, 25 per cent of requests related to people looking to become landlords, while this figure dropped to 19 per cent in January of this year, due to the fact that demand for property to rent dropped towards the end of the year.

Karen Barrett, chief executive of unbiased.co.uk, comments: "We are seeing an increasing number of high loan to value mortgages return to the market which can only be good news for first time buyers trying to get their foot on the ladder.

"Our latest figures reveal that enquiries for first time buyer advice reached a 23 month high in January, suggesting real momentum in the FTB market and a real consumer demand for whole of market mortgage advisers to guide them on all the options available and help them to find the best solution."