Uncertainty about the future of the British economy prior to the EU referendum did not put off many first-time homebuyers, a study has found.
According to research by estate agents Reeds Rains and Your Move, the average buyer paid £173,282 for their first home back in May, shortly before the June 23rd vote. This was a 2.7% rise on the average house price paid in the previous month of April. In May 2015, the average first home price was 11.9% lower.
Though prices paid by first-time buyers has increased, figure released by HM Revenue and Customs show that the total number of property transactions in May was down 11.9%. This slowdown in the housing market was likely to have due to people waiting to see the result of the EU referendum before making any commitments.
Adrian Gill, Director of Reeds Rains said:
“Brexit worries haven’t dented first-time buyers’ appetite to own their own home. Many still want to capitalise on the record low mortgage rates available at the moment which mean that monthly mortgage repayments are increasingly affordable.”
The Financial Times reported that post-Brexit, there has been a fall of 5% in home values. Gill sees this as a good time for house buyers, who may be able to take advantage of the resultant good price deals.
With low mortgage rates and attractive mortgage protection insurance deals, first-time buyers are currently in a good position to take their first steps on the property ladder.