The news of a slowing down of the housing market will have been little to celebrate for those homeowners looking for their equity to continue building.  The recent strong demand for property has led many homeowners to stalking their property value data online.  Some could see increases in merely a week’s time.  More equity can mean a better remortgage and more cash back for those looking to ease their debt level or make a major purchase.  It could also mean more profit if the homeowner chooses to sell and finds a willing buyer.

The housing market may be showing a slowdown but data has been released that shows first time buyers were still keen to jump on the property level at a strong rate at the start of summer.  According to LSL Property Services, the number of first time buyers purchasing property reached a seven year high in July.  There were 30,000 first time buyer sales which is 25% more than seen last year at the same time and it is the largest number since August 2007.  The average deposit for a first time buyer in June was £26,642 which is 10% less than in June 2013 which was £29,609.

David Newnes, of LSL Property Services, remarked, “A whole generation of young buyers were trapped on the side-lines of the property market as the economy recovered from the recession, struggling to save for a deposit whilst inflation remained stubbornly high, savings rates were stuck at a historic low, and real wages fell.  But the recent increase in high LTV (loan to value) lending options, enabled by Help to Buy, has allowed them a shot at getting on the ladder at long last.”

Evidence that first time buyers were paying more than they would have last year was seen in the data that revealed they had paid an average 8% more for property than last year with the new average of £155,844.

Currently the Bank of England has continued to vote to keep the standard rate interest rate at the historical low level of 0.5% but lenders have been edging their interest rates slowly upward.  For those resting on the fence trying to decide the right time for a remortgage or mortgage deal it might be time to take their consideration to a more serious level.  The Bank has been forecasted to increase their rate either by the end of the year or early next year.