In the past year, the housing market has largely been driven by people using the stamp duty holiday to assist their property purchase. Many observers believed this scheme hasn’t been too helpful for first-time buyers.
Therefore, it shouldn’t be a surprise to learn first-time buyers have been less active in the market, but we believe this is changing. This is something we have seen in and around Royston, and it has been backed by various studies of late.
First-time buyers have faced challenges
· 70% of respondents have been furloughed at some point in the past year
· One in six respondents have lost their job because of the pandemic
· More than 50% of respondents have experienced a collapse of a property deal in the past year
There have been challenges in the market, especially for first-time buyers, but it is pleasing to note many of these buyers remain determined to purchase property as soon as they can.
Mike Scott, Chief Analyst at Yopa, says: “Delays in moving due to the recent situation are obviously going to exist. But the extent of the delay reported by potential first-time buyers suggests that there is still pent-up demand waiting for the restrictions to be eased further, for furloughs and job uncertainty to end, and for people to return to full-time work for full-time salaries.”
First-time buyers have time on their side
Other findings in the study include:
· One in three homebuyers are happy to wait until the stamp duty holiday ends to be active in the market
· 22% of respondents said the stamp duty holiday hasn’t impacted their plans
Mike Scott also said; “At Yopa we do not expect an immediate national fall in prices once the stamp duty holiday ends. We believe that the lifting of Covid-19 restrictions - combined with people’s reassessed post-pandemic housing needs, the 'accidental savings' that many have made over the past year and the desire for a post-pandemic fresh start - will keep house prices high for at least for the rest of this year. There may well be price decreases in some market sectors, such as inner-city flats, but these will be more than outweighed by price rises for property types that are in high demand for the post-pandemic lifestyle.”
Some of the leading concerns cited by respondents include:
· The size of deposit required to buy a home
· A lack of suitable and affordable mortgage products
· Additional criteria restrictions placed on attractive mortgages
· One in five buyers plan on using the new Government backed mortgage guarantee scheme
· 85% of first-time buyers plan on using some form of Government assistance to buy a home
· 13% of respondents said commuter links are less important now than they were before the pandemic
· 75% of respondents listed outside space and fast broadband as being of the utmost importance
We help you step onto the property ladder
At Country Properties, we know buyers have legitimate concerns. One of our tasks is to address these concerns, and provide you with solutions which help you step onto the property ladder. If you would like to arrange an appointment where we discuss your options in and around Royston, please contact us today.
The fact that 85% of first-time buyers state they intend to use some form of Government assistance to buy property is pleasing. This indicates prospective buyers are examining their options, and making informed decisions.
There is a range of Government backed options to choose from, and we are more than happy to help you find what you are looking for.
If you are keen to make a move in, around or out of Royston, we are here to assist you.
In line with Government guidelines, our Royston branch is open and is staffed with sales and lettings personnel. If you have any queries or need advice on property sales and lettings then please call 01763 245121 or email email@example.com