Window of opportunity for first time home buyers in 2017, says Rightmove

First-time home buyers in the UK have a “window of opportunity” in 2017 as there are fewer buy-to-let investors to compete against in the market, Rightmove said on Monday.

The property website said first time buyers will also have more negotiating power as sellers are more open to lower offers given sales in the sector fell 13.2% in December compared to a year ago.

The decline in the number of sales agreed in the first time buyers market last month was driven by less buy-to-let investors following the increase in stamp duty on these purchases in April 2016.

“Those planning to buy their first home in 2017 have more choice of properties and less competition from other buyers than their counterparts a year ago. It’s a possible learning point for aspiring first-time buyers that a year ago buy-to-let purchasers acted more quickly and closed deals at a faster rate, appearing not to take a Christmas break,” said Miles Shipside, Rightmove director and housing market analyst.

In January, house prices in the UK rose 0.4% compared to a month ago and 3.2% compared to a year ago to an average asking price of £300,245.

The average asking price in the first time buyers sector gained a monthly 2.6% and an annualised 6.4% to £188,612.

In the second home buyers market, average asking prices were £255,387, up 0.4% on the month and 4.5% on the year.

The prime real estate market saw prices drop 0.2% on the month but grew 0.4% on the year to £520,840.

On a regional basis, London’s house prices continued to edge higher, rising 1.4% month-on-month and 2.3% year-on-year to an average price of £624,953.

Prices in the South East were an average £404,804, a monthly increase of 1.5% and an annualised rise of 5.5%.

House prices also rose in the East of England and North West. In contrast, the North East, Yorkshire and Humber, East Midlands, West Midlands, Wales and the South West experienced falls in house prices.