Boom in First Time Buyers

The housing market, often perceived as daunting and inaccessible to first-time buyers due to soaring prices, appears to be undergoing a transformation. With a notable proportion of property transactions in London being initiated by individuals taking their first steps onto the property ladder, there’s reason for optimism among those with goals of homeownership.

CHANGE IN EXPECTATIONS AND PREFERENCES

There are indications that first-time buyers are showing a growing preference for smaller homes, likely influenced by elevated mortgage rates that are placing strain on their budgets.

According to recent data, the lingering effect of higher mortgage rates continues to constrain the borrowing potential of first-time buyers. As a result, there has been a clear shift towards smaller homes, with a notable majority (51%) of first-time buyers now selecting properties featuring one or two bedrooms. [1]

HELP FOR FIRST-TIME BUYERS

The government has announced an extension of the Mortgage Guarantee Scheme until the end of the year, providing continued support for first-time buyers and home movers looking to purchase property with a minimal 5% deposit.

In addition to this scheme, various other government initiatives are tailored to assist individuals in stepping onto the property ladder.

These include Shared Ownership, the First Homes scheme, and the Lifetime ISA. Furthermore, some lenders are offering eligible first time buyers their chance to get on the property ladder with only a 5% deposit for a New Build property.[2]

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