More house buyers have low deposits

July 10, 2017 by Brendan O'Neill

Property Market

Just over one fifth of recent housing market activity has been from buyers who have a low deposit.

According to recent findings, the number of people in the UK buying a home with a small deposit is on the increase, which is encouraging news for first time buyers. The number of buyers who have a large amount of money to put down as a deposit has reduced.

The latest figures indicate that 21.3% of the market was held by small deposit holders, in comparison to 21.5% in April. However, in December 2016, just 16.1% of the property market was held by small deposit holders. May 2017 was the fourth consecutive month to show less than 35% of the total market for buyers with a large deposit.

The findings were published by e.surv chartered surveyors. The director of the company, Richard Sexton, said:

“Low mortgage rates and government schemes are helping more buyers onto the ladder and we are seeing this happen in greater numbers than it was at the end of 2016.”

Sexton also added that the distribution of overall lending across the country had shifted, with areas to the north of Birmingham demonstrating an increase in mortgage applications, while those in the south east falling.

According to experts, mortgage rates are at record lows, and may be set to rise. The cheaper rates are believed to have been due to a price war, as lenders compete for custom. CeMAP qualified mortgage advisors are able to find some of the best deals available for buyers.