First-time property buyers in Wales felt less impact from the end of the stamp duty holiday than those in other parts of the UK. According to the Council of Mortgage lenders, this is because majority are buying properties below the £125,000 threshold.
In the first quarter of 2012, 58 per cent of first-time buyers in Wales bought property for less than £125,000, down from 59 per cent in the previous quarter. However, the UK as a whole saw a much more significant drop as homeowners sought more expensive homes in the final weeks of the stamp duty holiday.
Furthermore, Welsh first-time buyers continue to borrow to borrow a higher proportion of the property value, reaching an average of 85 per cent in the first three months of the year.
“Activity in Wales in the first quarter followed a similar pattern to that of the UK, except for average deposits where first-time buyers, and homemovers to a lesser extent, are still seeing a more positive trend in Wales by putting down less as a deposit than their UK-wide counterparts,” said CML Cymru chair Peter Hughes.