Helping First-Time Buyers Helps Everyone In Housing Market

Wed 04 Aug 2021

If you are on the property ladder, you might not think the plight of the first-time buyer (or FTB) affects you. This isn’t the case. If you are looking to sell your home, it might be that FTBs are the ideal buyers for your home, and if these buyers cannot afford to step on the housing ladder, your own moves might be placed in jeopardy.

At ADM Residential, we stay in touch with buyers and vendors. We know the local market in Huddersfield, and we stay in touch with the latest studies and findings. This ensures we help you make an informed decision, no matter what you want to achieve in the property market.

What worries first-time buyers?

According to the survey carried out by money.co.uk, which spoke to over 1,500 first-time buyers, the issues that FTBs are most fearful of are:

• A drop in house value or suffering negative equity, which was said by 31% of respondents

• The clash between saving enough for a deposit versus a rise in house prices, cited by 26% of respondents

• Being unable to afford a mortgage over the long-term, said by 22%

• A spike in property prices relating to COVID-19, highlighted by 13% of respondents

• Splitting from a partner after buying property together, said by 11%

Nisha Vaidya, mortgage editor at money.co.uk, said: “There are a few things you should keep in mind if you want to avoid negative equity. Firstly, it’s important to make sure you pay the market value for the property, so don’t shy away from negotiating on the asking price. Secondly, the larger your deposit, the more equity you will have in the property. So, if you are able to save enough, putting down a bigger deposit is a good idea.”

How can first-time buyers save for a deposit?

Some of the ways that FTBs can enhance their chances of saving enough money for a deposit include:

• Setting a reasonable budget and the following it closely

• Find a way to reduce the rent they pay without compromising too much on safety or their standard of living

• Review the support on offer to FTBs

• See if friends or family members are willing/able to help

Nisha Vaidya also said; “If you are worried about affording your mortgage, there are ways a buyer can get support. This type of support can include a payment deferral, an extension to your mortgage term and a change to your mortgage type. If you are looking to buy a new home but have financial worries, using the Help to Buy scheme could offer you the support you need. This Governmental scheme offers buyers an equity loan they can use to help buy a new build home, allowing buyers to purchase a property with a 5% deposit and receive a loan for up to 20% of the property value, which will be interest-free for 5 years. The buyers must then take out a standard mortgage for the remaining 75%.”

We know many first-time buyers are looking for property in and around Huddersfield. According to Rightmove, the Huddersfield housing market can be explained in the following way:

“Properties in Huddersfield had an overall average price of £198,689 over the last year.

The majority of sales in Huddersfield during the last year were terraced properties, selling for an average price of £132,716. Semi-detached properties sold for an average of £178,761, with detached properties fetching £336,252.

Overall, sold prices in Huddersfield over the last year were 13% up on the previous year and 17% up on the 2018 peak of £169,317.”

We can take the stress out of moving home

Nisha Vaidya concluded by saying; “Getting on the property ladder can be a nerve-racking experience for first-time buyers, as being misinformed can cost greatly – whether it’s losing out on a dream home or losing a lot of money in the process. However, the best thing first-time buyers can do is do their homework thoroughly before embarking on this journey. Being equipped with the right information will cut the risk of encountering unpleasant scenarios that many first-time buyers fear, such as experiencing negative equity or being unable to afford a mortgage long-term. Once you are confident in your knowledge the process should be less risky and more exciting.”

If you are selling your Huddersfield home, contact us today. You can book a valuation or just chat about how we make a difference in selling your home. Of all the estate agents Huddersfield vendors can call on, we like to think we make a difference in selling local homes, so contact ADM Residential today.