subject: The Cml Recently Said The Amount Of Mortgages Applied For In First-time Home Buyers Jumped Towards T [print this page] The CML have said the statisticss of mortgages approved for in first-time property buyers increased towards the close of 2011 with 18,700 home loans in December, which demonstrated a 7 percent yield from November and 14% which was an increase on December last year.
Both the Council of Mortgage Lenders and The Royal Institution of Chartered Surveyors believe the spike is to avoid the deadline prior to the end of their one percent stamp duty break in March on homes under two hundred and fifty thousand with current statistics from HM Revenues and Customes suggesting that, first time buyers buying a property are pushing up the house market in order to beat the March 24th deadline for the end of the Stamp Duty break.'
Additionally, the NAEA has claimed a small increase in the figure of home dealings to first time buyers, finding that in January dealings were up to two percent measured with December house dealings furthering the proof that the opening six months to 2012 could be optimistic.
Michael Newey, RICS housing representative, said: "The fact that first-timers will not be exempt from stamp duty seems to have spurred at least some of the population in that class to try and buy a home prior to the time limit. As a consequence, surveyors are relatively optimistic for the year ahead."
National Association of Estate Agents president Wendy Evans-Scott confirmed: "first time buyers look to be making the most of the Stamp Duty holiday before it comes to an end in March."
Although there is the very imminent threat that it could equate to a lull in transactions in the new tax year resulting in more instability in property prices as first time buyers, yet again, have to discover substantially larger deposits to arrive on the housing ladder. Join this with various other problems in the economic market as a whole at current times creates a basis for a very precarious 2012.
David Whittaker, of Mortgage Brokers Mortgages For Business, said: "There is a very impending danger that the end of the first-timers stamp duty exemption will cause the beginning of a new decline at the lower region of the housing market as a rush to complete transactions before the cut off sate is followed by an activity decline."
"We have been expecting a flow of first-timers on to the market, as the stamp duty break ends in March, and December's findings appear to show this has now begun," said Paul Smee, the council of mortgage lenders director general.
"With the eurozone problems still rumbling on, although, we indicate there is still a real risk that this year's mortgage application levels will be declined than those noted in last year."
However the Chancellor George Osbourne said that the tax cut that was announced under the previous government had not been the success as many people had anticipated and stated the termination of the exemption in March 2012. It remains to be seen if there planned any change of heart in the yearly budget.
