Abbey’s latest quarterly first-time buyers’ report revealed that, in the space of the last three months, the number of people who are confident about being able to buy their first home in the next year has remained at 5 per cent. A quarter feel that if they don’t get onto the property ladder soon, they’ll never be able to.
Barry Naisbitt, chief economist at Abbey, said: “Given the recent changes to stamp duty, it’s disappointing that confidence among first-time buyers has shown no improvement.
However, on a more encouraging note, our research also showed they are willing to take a flexible approach to their housing finance and that, if the Bank of England did cut interest rates, this would give them a boost.”
Peter Gladdy, director of Mortgages Direct, reported FTB levels to have risen as more borrowers look to an interest rate cut in the near future.
Gladdy said: “Despite the Bank of England’s decision to freeze interest rates for the time being, the substantial increase in the percentage of borrowers opting for tracker mortgages and variable mortgages over the past month hints that consumer confidence has switched.
“There is growing belief that the Bank of England will decide to lower interest rates in the imminent future.”
Rachel McKay, from the Moneyfacts.co.uk mortgage team, highlighted a trend of cheaper fixed-rate deals for the first-time buyer.
She said: “The reduction in rates combined with house prices slowing and the government talking of new FTB initiatives may mean there’s a glimmer of light at the end of the tunnel for those looking to get onto the housing ladder.”
