The extension of the stamp duty holiday caused a fresh wave of demand from people looking for new homes and hoping to benefit from slashed costs.
The housing market has once again been kicked into life, according to Tahir Farooqui, chief executive of Canopy.
Early March saw the extension of the stamp duty holiday, causing a fresh wave of demand from people looking for new homes and hoping to benefit from slashed costs.
Farooqui warned, however, that this is causing an artificial inflation of house prices across the UK, as sellers seize the opportunity to up asking prices and buyers compete for available homes.
He said: “As a result, it’s all too easy for hopeful first-time buyers to fall behind in the race.
“While 95% mortgages will be reintroduced this month, the problem remains that hopeful homeowners need to be considered creditworthy enough to secure a suitable mortgage in the first place. And in a competitive market, this is even more difficult.”
According to Farooqui, the average renter spends £64,000 on rent before being able to save enough to purchase their first home.
As a result, he stresses that it is essential the monthly payments are taken into account for their credit score.
He added: “Behaviours such as rent tracking should become the norm, aiding Generation Rent from the get-go, rather than continuing to put hurdles in their way.”
