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TODAY'S OTHER NEWS

First-time buyer sales hit post-crisis high

The number of first-time buyer sales rose nearly 5% in July to hit the highest figure since the recession.

There were 29,700 first-time buyer sales in the month, the highest number since 35,300 in August 2007.

Sales rose 4.9% month-on-month as buyers rushed to get on the ladder ahead of a base rate rise, and before the best deals are withdrawn, according to the latest First Time Buyer Tracker from Your Move and Reeds Rains.

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The research also shows that the average first-time buyer deposit rose 10% over the last year to £27,975, equivalent to 72% of average yearly income.

That compares to 66.2% one year ago.

First-time buyers are paying an average purchase price of £161,985 in July, a rise of 8.9% year-on-year.

Adrian Gill, director of estate agents Your Move and Reeds Rains, said: “First-time buyers are experiencing a summer of white-hot activity, unimpeded by rising deposit costs.

“The post-General Election bounce has given way to a more stable optimism, as first-time buyers realise that the property market is at no immediate risk of being tampered with by the Government.

“Rather, incentives attractive to first-time buyers – such as the Help to Buy scheme – are running along steadily, while further low-cost housing development is being encouraged to entice more people onto the ladder."

Gill said first-time buyers were also motivated by concerns that the Bank of England may hike rates sooner rather than later.

"The thought of months of rock-bottom mortgage rates being brought to an end is encouraging many wavering first-time buyers to jump on the property ladder before repayment costs shoot up.

“Real wages have been growing too, and first-time buyers are able to shoulder the short-term burden of a slightly higher deposit to spare the risk of losing out on a good mortgage deal.”

Gill added: “So long as the economy continues on its upward trajectory and the aspiration for home-ownership remains strong, property prices can only increase.”

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