02nd February 2023

2023 – The Return of the ‘Regular’ First Time Buyer..

For a very long time now (I was a teenager in the 70’s!) it’s been widely recognised that first time buyers (FTB’s) were always the ‘building blocks’ of the housing market, allowing more experienced owners to make their move to a larger house, and so on up the property ladder.

In recent years and during Covid however, and up until now, the squeeze on mortgage lending was seeing a dramatic shift in the different criteria surrounding peoples’ moving plans. The pandemic has certainly changed the dynamics of the housing market.

Many more experienced movers have considered their own personal circumstances, for instance now that they continue to work from home. This leads to a change in the mindset toward properties that provide more space and potentially a garden, instead of the traditional city centre residence close to the office.

But wait a minute….

Are we about to see a return to the first time buyers’ powering the market again? The Government have made no secret of their desire to turn ‘generation rent’ into ‘generation buy’ rapidly. So get ready for a surge of FTB’s with the necessary funds helped by lower deposits, more favourable mortgage interest rates just now, not to mention the bank of mam & dad again!

There’s no secret that the rising cost of private rents, is making potential FTB’s think about which direction they will move this year regarding where they would like to live. These rental increases largely powered by the higher rates for Buy to Let mortgages, and the fact that some investors and landlords are simply selling up, thus reducing the availability of suitable rental stock.

This is the opportunity that FTB’s have been waiting for a very long time. Could now be the right time to get that Mortgage In Principle (MIP) you’ve mentioned recently? And potentially secure your very own first home once those investors and landlords start selling.

Buyers will also benefit from the recent stamp duty payments (check the thresholds), and especially since the recent changes kicked in. However do also check the rules on joint purchases, potentially with someone who has ‘owned’ a home before! Either way there are brighter times ahead for those desperate to get their foot on the housing ladder.

Right now could be the ideal opportunity to make that a reality. Make sure however that you have done your homework, and you have your MIP from your mortgage provider or broker in your hand, it will help to put you at the front of the queue.

Also don’t forget those essential deposits, because remember the bigger the deposit, the bigger and better the home can be, largely because of the more favourable rates on offer!

All that it leaves me to say is, good luck to all of you looking to buy, and of course to the mam’s & dad’s out there, are you listening…

Thinking about moving? Think Target Property NE