08th April 2021

The Return of the First Time Buyer (FTB)

Just over 12 months ago, it was widely recognised that first time buyers were charged with driving the property market from the bottom up, allowing other owners to make their own move to a larger house.

During Lockdown however, the squeeze on mortgage lending was seeing a dramatic shift in the different criteria surrounding peoples’ moving plans. Corona-virus has certainly changed the dynamics of the housing market. Many more experienced movers have considered their own personal circumstances, for instance now that they may be working 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 center 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’ – So get ready for a surge of FTB’s with the necessary funds helped by 5% deposits, 95% mortgages and the bank of Mam & Dad again!

Those buyers will also benefit from no stamp duty payments (check the thresholds) even when the tax holiday expires in September 2021. 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 a ‘deal in principle’ from your mortgage provider in your hand, it will help to put you at the front of the queue. And 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 and Mam/Dad, are you listening……