Good times for first time buyers
Taking your first steps on the property ladder can seem quite daunting, with market news constantly changing and figuring out where to start.
Therefore, we are here to update you on all the reasons why now is a good time to become a first-time buyer in the UK.
Mortgage guarantee scheme
This government-backed scheme was launched all the way back in April 2021 and has recently been extended to December 31, 2023. This creates the perfect opportunity for anyone looking to buy their first home with a 5% deposit.
House prices can be confusing!
There is so much mixed information out there, and sometimes this can be unsettling. The average UK house price in February was recorded at around £285,476. This is a monthly increase of 1.1%, a quarterly change of -2.5%, and an annual change of +2.1%.*
When it comes to the news and statistics, particularly national average statistics, it’s important to take them with a pinch of salt.
Overall, house prices are adjusting after the pandemic, and the market has slowed a little. This creates more opportunities for you to buy and sell at a good price.
Bargaining power
There is always scope for negotiation, and this is particularly true in the current climate. Talk to Zoopla, and home sellers are discounting their homes by as much as 14.1% to get a sale.**
Yet again, do not take this figure to mean that you will get at least a 10% discount on your first home. That said, you may get more than this! It depends on the house and its condition and how quickly the vendor wants to move.
You are appealing because you have no chain!
You are in many ways in a similar position to a cash buyer in that you have no chain, so you may be able to make a cheeky offer on your first home.
House price growth
Don’t worry about house prices in the long term; they are expected to start growing again in 2024. So, don’t wait too long if you have a game plan for waiting to see what happens.
Interest rates
Interest rates are currently being recorded as higher than perhaps a few years ago. Many analysts suggest they will never return to the ultra-low rates of a few years ago. That said, they are falling again. Therefore, relatively speaking, they are at a reasonable rate, and even if the base rate rises, mortgage rates are expected to remain constant. If there are any changes, they should be minimal.
The sooner you start, the sooner you pay off your mortgage
It’s all very well waiting to see what happens or to see if house prices fall, but the money you may save, will be lost! Delaying paying off your mortgage is costly; add to this the cost of renting and the temptation to spend your deposit!
Now is a great time to take your first steps on the property ladder. Get in touch to see how we can help you today.
Halifax*
Zoopla**
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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