Struggling to get on the property ladder?
We may have a solution!
The Coronavirus Pandemic came in like a hurricane and shook everything up and one thing that we’re certain that most people weren’t expecting was house prices increasing.
Back at the start of the pandemic, there were concerns about the housing market and many thought that the market was going to slow down due to uncertainty of jobs and the economy. However, with the Government introducing the Stamp Duty holiday to encourage activity, we weren’t expecting to see the market boom.
According to Nationwide in September 2021, house prices increased by 10% in the last year with the average house price in the UK being £248,742. Back in September 2019, the average house price was £215,352 – a difference of £33,390.
This is fantastic news if you’re already a homeowner however, not such good news if you’re a first time buyer trying to get on the property ladder. This means that you will need to save up for a larger deposit to keep in line with the increasing house prices.
What can a first time buyer do to get onto the property ladder?
One answer can be a joint mortgage. Purchasing a property with someone else can be a good alternate option, as your application will be based on two incomes and together, you will be able to put down a larger deposit.
Another option is shared ownership. This is when you part buy, part rent a home through shared ownership which means you can apply for a smaller mortgage amount and could also put a lower deposit down.
Check if there are any schemes available such as the First Home Scheme. At the time of writing this, there is a scheme available in England which offers a 30% discount on the market value of new build homes to eligible first time buyers (priority for key workers and army veterans).
However, depending on where you live and your circumstances, there will be different schemes available to you. The Government introduced a campaign called ‘Own Your Home’, with a range of government schemes available to make buying a home more affordable, you can search to find out which scheme is right for you.
One last thing to think about is where you would like to live. Different regions of the UK have different house prices, as you probably know London is the most expensive place to live with house prices averaging at £500,980. Whilst in the North West of England, average prices are £191,326 and the West Midlands averaging £220,558. With excellent transport links and working from home becoming more available to employees, looking in a different area may be something to think about.