The online version of a British newspaper reports that people buying homes for the first time have taken out more loans than a year ago, thus driving up demand for homes on the market. In January of this year, buyers got loans totalling 18.9 billion pounds, compared to 18.6 billion in January of 2016. The number of buyers in this class also rose by eight per cent. The supply has remained flat, though, thus keeping the market from growing. Prices are expected to go up by three per cent.

Key Takeaways:

• New buyers are driving the housing market in the UK. Long-time owners and landlords are holding off on making long-term decisions.
• Cheaper loans are encouraging current owners to refinance and new home buyers increased drastically last year.
• Regional data shows that home buying and moving is not growing in all areas. The greater London area saw the lowest level of people moving homes in 25 years.

“Demand from new buyers is driving the housing market as landlords and home-owners hold off making any big decisions, according to banks and building societies.”

Read more: https://www.telegraph.co.uk/business/2017/02/23/first-time-buyers-keep-housing-market-solid/