With uncertainty reaching the housing market and a continued slowdown of price growth, there could be an opportunity for first-time buyers in the housing market, especially those that are property cash buyers.
The continued measures by Chancellor Phillip Hammond in his latest budgets have seen a sustained relief in the initial costs of homeownership for first-time buyers. The budget measures may not tackle the continued issue of huge deposits or moving costs, but they do go a long way to helping first-time buyers get on the property ladder.
After the initial scrap of stamp duty on homes valued up to £300,000 for first-time buyers in the Autumn 2017 budget, Chancellor Phillip Hammond has extended the stamp duty exemption for shared homes up to £500,000. This change in policy was enacted retrospectively to November 2017 as there was potential for buyers to be paying stamp duty even though their share of the property was less than £300,000.
These measures cover England, Wales and Northern Ireland. It does not, however, cover Scotland as they operate independently for stamp duty purposes.
Tax and regulatory changes in the housing market may not be enough to get all first-time buyers into the market, but it certainly does play a major role in affordability. Continued uncertainty around Brexit has kept a restraint on prices with some sellers looking to sell fast prior to negotiations, even in the low-interest-rate environment.
According to the land registry, so far in 2019 property prices across the country have only risen 0.7% on the previous year. This is a very restrained growth in light of the current interest rate environment.
After the major property indexes were released this month, the continued slow down in growth has been evident. In some areas, there has even been negative growth, including those in and around London, the South East, North East and parts of the midlands.
Ishaan Malhi, CEO and founder of online mortgage broker Trussle stated, “Those looking to get onto the property ladder should see the current slowdown in price growth as an opportunity to buy,”. “With interest rates still extremely low and the recent changes to stamp duty, first-time buyers are arguably facing better conditions than they have for some time.”
The continued dip in house price growth and regulatory changes have still not stifled the affordability issues facing first-time buyers. Wage growth is struggling to keep pace with inflation which makes the saving for a deposit far more complex than previous years.
However, with the continued decline in housing price growth, the proposition of owning your home for first-time buyers has become that little bit easier. With the continued support of regulatory changes, lower interest rate environments and negligible price growth, first-time buyers might be seeing the light at the end of the tunnel.
Are you buying your first home? Get in contact with Sell Fast for information on how to get on the property ladder, as we buy any home. Call 0800 368 7399 or request a call back to find out mor