A first time buyer, it seems, is immune from the fallout from Brexit.
Rightmove has reported an asking price rise of 3.3% at the bottom end of the property market in September.
Despite a national fall in property prices, one and two bedroom properties are still in high demand.
Over the last 12 months, the average price growth for all UK property was 4%. Traditional first time buyer properties, with two bedrooms or less, saw growth of 10.5% over the same period. That’s a difference of 6.5%.
Quick Move Now’s managing director, Danny Luke, commented:
The general trend following Brexit has been one of slowed growth. The property market is likely to continue experiencing significant uncertainty for at least the next two years. As a result, many would-be sellers are needing to adjust their asking price in order to attract nervous buyers.
Experts had been predicted that first time buyers would benefit from the price adjustments brought about by Brexit. Unfortunately, high demand has meant that properties at the lower end of the market have not seen the price adjustment seen elsewhere in the market, and property ownership remains largely out of reach for many would-be first time buyers.
Whilst this is not good news for first time buyers, it is very positive for those ‘second steppers’ looking to upgrade their first home for the next step of the property ladder. They will benefit from higher than average price growth on their existing property, but may be able to benefit from slowed growth on their onward purchase.
The higher than average price growth for first-time buyer properties may be in part down to stamp duty hikes.
With a 3% rise in stamp duty on additional property purchases, many landlords were keen to purchase new properties before April of this year. This created additional demand that will now have eased.
Moving forward, this may well mean a readjustment of pricing and an easing of pressure on first time buyers.