- 50% increase in the proportion of properties bought using mortgages in the first two months of 2014
- Help to Buy scheme funding is thought to be largely responsible for this
- Other influences are an increase in general market confidence and the availability of low interest buy-to-let mortgages
Following a surprise dominance of the property market by cash buyers in the second half of 2013, the start of 2014 witnesses a sharp return to the long term supremacy of the mortgage buyer. Rising from 40% market share in December 2013 to 60% in February 2014, it is clear that mortgages are far from past their sell by date!
Donna Houguez, Quick Move Now’s market analyst explains:
We are now seeing the true impact of the Help to Buy scheme as successful offers made in the last quarter of 2014 are reaching completion stage.
Bolstering this is the general mood of optimism in the economy – buyers feel more secure in their employment and are thus willing to take on the financial responsibility of a mortgage.
We are also seeing an increase in buy-to-let investors taking advantage of the low interest mortgages available to them at present.
On the other side of the equation, there is a downward pressure on the proportion of cash buyers – possibly due to rising prices impacting the number of ‘cash bargains’ available, making investments other than property more popular for now.
Quick Move Now provides one-of-its-kind data to property analysts to help with assessment of the housing market.
Data calculation: Quick Move Now sells hundreds of properties each year and the method of purchase (cash or mortgage) is recorded for each transaction.