WORLD

from First Time Buyer April/May 2023

20 QUESTIONS Abi Culley With

I have lost count of the headlines I have read about first time buyers struggling to buy their own home in recent months –and being priced out of the market. Anyone thinking about buying for the first time will undoubtedly be feeling the pressure – and maybe, not surprisingly, they might have even given up their dream of homeownership.

While it is true that the overheated market has been challenging –especially in terms of the availability of affordable mortgages – the reality is that now actually might be a good time for buyers. Let me explain…

Despite widely negative market depictions, I believe there are actually many opportunities available now for first time buyers eager to get on the property ladder. While the media portrayed a worrying and unstable property market following September’s mini-Budget, there are several emerging incentives which could provide aspiring home owners with some timely reassurance.

With drops in mortgage rates and average house prices, and an increase in incentives and schemes such as shared ownership, homebuying is still very much a feasible option for many1. Currently, average fixed mortgage rates are down to 5.6% from their August high, and lower rates are expected to remain relatively steady compared with the recent financial upheavals.

And why is buying still a good option? Well, one figure that continues to rise is the cost of rent. Zoopla reported that the average UK rent rose by 12.1% over the past year alone2. With an ongoing housing crisis within the rental market, flats are more expensive as well as harder to come by. Not a problem if you are managing to benefit from the hotel of mum and dad, but for those stuck in rental –this is not good news.

There is a range of products which can help you get on the ladder. The Lifetime ISA is an inflation busting account which can top up your deposit by 25%. That’s the same bonus achieved by a Help to Buy ISA, however the Lifetime ISA can also be used for retirement savings. So, worry not if you missed the chance to open a Help to Buy ISA, there is still an opportunity to have your deposit topped up.

For those struggling to grow a reasonable deposit, shared ownership may allow you to take a first step on to the housing ladder and is a useful option if you can’t afford an entire deposit and mortgage repayments.

Even more good news for first time buyers, it seems the market has shifted away from favouring sellers in recent months. I’ve noticed the number of properties on the market growing, whereas demand has subsided, with price drops becoming more common giving prospective buyers the edge in many negotiations.

Even with these positive signs, I realise homebuying can still be a daunting concept. To combat some of the stress, I’d always suggest first time buyers make use of free, professional advice which will be available to them through the likes of mortgage lenders. So, rest assured, in an industry that has been painted almost as the first time buyer’s enemy, there are truthfully people there to help guide you through.

With all these emerging and longstanding incentives, which promise to benefit the house buyer, it seems there is still hope even within a market plagued by worrying headlines and disbelievers. With the buyers’ market already experiencing some positive trends, 2023 could perhaps be the year to reinstate optimism among even more aspiring homeowners.

1propertyreporter.co.uk/five-things-to-give-aspiring-first-time-buyers-hope-rightnow.html

2thisismoney.co.uk/money/mortgageshome/article-11745083/Houseprices-2023-bring-down.html

Hop into spring! The Easter bunny is on his way! If you are looking for the perfect Easter treat, decoration, gift or craft, then here at FTB we have a few ideas

Yes, you candy!

Personalised smash cup, £19.99, gettingpersonal.co.uk

The perfect alternative to an Easter egg or birthday cake! Nothing satis es a sweet tooth in the same way as this pink strawberry smash cup!

Ears to a great Easter

National Trust milk chocolate bunny shapes, £4.75, shop.nationaltrust.org.uk

A perfect sweet treat for all the family to enjoy.

Let’s get ready to crumble

Don’t worry, be hoppy Easter rabbit wreath, £8, hobbycraft.co.uk

Easter egg hunt tin, £48, biscuiteers.com

Gift this sweet display of Easter biscuits that comes with a fabulous tin which can be kept and used for years to come.

Brighten up your seasonal style with this Easter rabbit wreath. Created in the shape of a bunny, the pretty wreath features stunning oral details, with colourful egg ourishes.