First time buyers rise ahead of stamp duty increase
The number of first-time buyers purchasing property increased by seven per cent at the end of 2011, fuelled by the impending increase in stamp duty.
There were 18,700 mortgages – worth a total of £2.3bn – issued to new purchasers in December, an increase of seven per cent by volume and ten per cent by value on the previous month.
The figures, produced by the Council of Mortgage Lenders, show an increase in the proportion of properties worth under £250,000 bought by first-time buyers from 50 per cent to 53 per cent.
These purchases are within a price band that is currently exempt from stamp duty, making it likely they are beginning to rush through purchases before the concession ends in March.
Lending to movers, however, experienced a seasonal decrease in from 29,300 transactions worth £4.8bn in November to 28,700 transactions worth £4.6bn in December.