The housing market in the UK is showing signs of a healthy recovery, with a recent report from L&G showing an increase in first-time buyer (FTB) enquiries. This is good news for the economy, as a strong housing market is a key indicator of economic growth.
The report from L&G revealed that the number of FTB enquiries had increased by almost 10% in the first quarter of 2021, compared to the same period last year. This is a positive sign that more people are looking to get on the property ladder, which is essential for a healthy housing market.
The report also found that the average FTB deposit had increased by 6%, indicating that more people are able to save up for a deposit. This is likely due to the government’s stamp duty holiday, which has made it more affordable for people to buy their first home.
The increase in FTB enquiries is also being driven by low mortgage rates. The Bank of England base rate has been at an all-time low since March 2020, meaning that mortgages are now cheaper than ever before. This has made it easier for people to get onto the property ladder, and has helped to fuel the recent surge in FTB enquiries.
Overall, the report from L&G is a positive sign for the UK housing market. The increase in FTB enquiries indicates that more people are looking to get onto the property ladder, and that the government’s stamp duty holiday and low mortgage rates are helping to make this possible. This is great news for the economy, as a healthy housing market is essential for economic growth.