The first time buyer market, overall, saw positive growth throughout 2015, even though December saw a demoralising fall in the amount of people buying their first homes.
1,300 less people bought their first home in December compared to November of 2015, a drop of 4.7 per cent.
However, in the 12 months up to December 2015, we saw a rise of first timers getting their foot on the property ladder rise by 1.1 per cent.
This doesn’t sound by much, but it is definitely a step in the right direction, and it shows that it isn’t as impossible as it was to become a first time property owner.
Having said that, it is still very difficult for people to purchase new property when they don’t have a house or apartment to sell simultaneously, as evidenced by the need for the Help to Buy London Scheme.
Mortgage rates have also remained low, mostly due to the fact that the Bank of England has no plans to increase their base rate over the near future. This has helped generate affordable mortgage prices, but it is likely that this is only a postponing measure and the rate will eventually have to rise again.
The government incentives and schemes “increasingly came into their stride as 2015 has progressed. Some of the credit for this revival in activity should also go to first time buyers themselves. Over the course of the year they have toughened up their act and sought to get the best property they can at the best price and it’s a skill that will serve this group well as they head into 2016,” so said the director of Your Move and Reeds Rains, Adrian Gill.
In order to get into the property market, a first time buyer needs to be smart and make use of as many of the government schemes available, and find the one which suits them best. If you are struggling, the Help to Buy ISA can be used in conjunction with any of the other Help to Buy schemes.
