Buying your first property is not only of importance to the First-Time Buyer, but often to the Parents and Grandparents too, and is something the Government continues to be keen to deliver support on.
While many First-Time Buyers face enormous challenges to get onto the property ladder, a positive sign is that last year over 400,000 bought their first home – up 35% on the year prior.*
Some of the key triggers were people looking to live a different life due to the pandemic (possibly outside the major cities), and the Stamp Duty reduction, which was of benefit for some parts of the UK.
However, it demonstrates the desire to get onto the first rung of the property ladder. So much so, that nearly half of all renters would like to buy out their landlord, if circumstances allowed.
(Source: Wayhome, Rent to Buy research, January 2022)
Flats rise less in value
With the ‘race for space’ helping to push up property prices across the board, this could make securing the first one even tougher. However, the biggest race has been for detached houses (which saw a 17% price rise between March 2020 to the end of 2021). Flats rose less, at 9% over the same period, with a 15% rise for terraced & semi-detached properties.
(Source: Halifax, January 2022)
Pulling together the Deposit
Despite the Government delivering various schemes, along with the return of more 5% and 10% deposit deals from lenders, the deposit itself continues to be the major stumbling block.
The figures in the box show that the average deposit covers 20% of the purchase price, but you may be able to get onto the ladder with just a 5% deposit. Across the UK, that’ll still mean saving (or securing) around £13,500, on average.
For those lucky enough, there’s also the ‘Bank of Mum & Dad’ (plus Grandparents) who may be able to help out.
And how we can help…
Whatever your circumstances, we can help navigate a way through the deals on offer, assess your credit rating, run though all the paperwork required, plus chase everyone up along the way.
Your home may be repossessed if you do not keep up repayments on your mortgage.