Search
20th March 2018
Things are looking up for those wishing to get on the property ladder. In 2017 more first-time buyers took out mortgages than any year since the financial crisis.
The number of UK first-time buyers is at the highest it has been for 10 years. In January, the number of buyers entering the market rose by 16.4%. But why is this?
In the Autumn 2017 budget, Stamp Duty was immediately abolished for first-time buyers. That’s a saving of up to £5,000, which is definitely an appealing change for people wanting to buy.
Government schemes like Help to Buy allow you to buy as little as 25% of a home and pay rent on the rest. The deposit is much lower, and you can buy bigger shares of the property as and when you can afford to.
Help to Buy ISAs see the government boost your savings by 25% and more. Simply open the ISA, and for every £200 you save, you’ll get a bonus of £50.
Help to Buy Equity Loans from the government see first time buyers lent 20% of the cost of a newly built home. This means a cash deposit of just 5%, and a 75% mortgage to make up the rest.
As well as understanding and awareness of these schemes, mortgage approvals are rising. For debut homeowners, approvals lifted from 53% in 2016 to 74% in 2017. As access to finance improves, the rates in first-time buyers rise. Property expert David Maslen said:
“First time buyers are very important to the market - crucial in fact. Without them, sellers can’t move on, meaning the property market comes to a grinding halt. It’s all a chain reaction.”
Are you thinking about buying your first property in Brighton & Hove? It’s important you work with someone who will make the process smooth for you. Maslen Estate Agents offer everything from independent financial advice to regular contact to reassure you throughout the buying process. If you would like help, read our checklist for first-time buyers or get in touch today.