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04/08/22
Buying

First Time Buyer Levels are Up Despite Rising House Prices and Interest Rates

This summer, the temperature isn’t the only thing heating up and reaching record highs. Despite inflation hitting a historical high of 9%, and the UK struggling to grapple with the current renowned cost of living crisis, evidence shows that the number of undeterred first-time buyers has increased by 93% over the last ten years.

Supply and demand

With a struggle between supply and demand continuing to play out, rampant competition underpins seller’s preference towards applicants with who aren’t attached to an onward chain. First time buyers have the upper hand in today’s market as those looking to sell their home fast and with as few complications as possible will most likely accept an offer from a first time buyer rather than an applicant who has their own home to sell before they can move in.

Government schemes

The UK government continues to offer help for young people looking to get onto the property ladder. With help-to-buy ISA accounts offering up to £3,000 towards a new house and shared ownership schemes on a rise in popularity, first time buyers can feel more confident in their saving process up until their first offer on a new home.

Remote work

Working from home has become a possibility which is accessible to more people in the UK over the past few years, and this alone will have increased employment rates and yearly take-home salaries, additional to bonuses to help out with the current cost-of-living crisis. Those who were unable to obtain a job in their field of study due to lack of nearby opportunities have been offered the saving grace of remote work. Enabling more first-time buyers to put into their savings and earn enough to pay off a monthly mortgage.

Heatwaves

This summer the UK has seen record highs of 40 degrees which are set to continue in the months to come. Hot weather and confined spaces aren’t a great mix for young people trying to work from home. Summer is always the busiest time of the year for the property market with first time buyers being no exception, going from living with parents to your own house and garden becomes increasingly more attractive during heatwaves.

Prices on the rise

After a few years of unpredictability, one thing has become clear in the property climate: prices are on the rise. Before, first time buyers may have been waiting it out for any changes in the winds of uncertainty, but as things have finally began to settle, those who have been keeping their eye on the property market will know that now is the best time to buy. Stepping on the property ladder as early as possible is the best tactic as the home will only increase in value once it has been purchased, allowing ample opportunity to move on and upgrade in the future. Buying now is a smart move for anyone starting out, as while you’re saving up, the market will be continuously changing and growing.

For more information, contact your local CJ Hole branch today: www.cjhole.co.uk/prope...

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