A GLIMMER OF HOPE FOR FIRST TIME BUYERS
As mortgage rates go through the roof and a glut of buy-to-let properties flood the market, Edward Tranmer of Dale Eddison believes now could be the chance for first time buyers to finally get their foot on the property ladder.
It’s the end of July and you’ve just returned from a family holiday in Crete. No 10 is being stripped of expensive wallpaper following Boris Johnson’s resignation and a protracted leadership contest is only just beginning.
Otherwise, you could be forgiven for thinking the economic outlook remains unchanged and life feels relatively ‘normal’.
Fast-forward to October and we find ourselves under the leadership of a third Prime Minister in as many months. The CBRE All-Property Capitol Growth Index recorded a 1.6% fall in August, the first since the pandemic began and suddenly, we have good reason to feel uncertain about any home moving plans scheduled for 2023.
In Ilkley and the surrounding area we have noted a slowdown in transaction rates since Kwasi Kwarteng’s not-so mini-budget, with buyers now giving greater thought to increasing monthly costs and sellers considering home improvements rather than upsizing.
One group that could be poised to take advantage of the situation is the younger generation. Over the last few years, I have seen countless examples of landlords hoovering up terraced houses and apartments at the expense of first-time buyers. In September, the government made welcome changes to the Stamp Duty rules for first-time buyers and with lots of fixed rate buy-to-let mortgage products up for renewal in the early part next year, we may see an increase in the number of landlords looking to dispose of the aforementioned properties and an up-tick in the availability of housing stock in the £200,000 – £300,000 price range. Those individuals who can still afford to take that first step on the property ladder may have a greater abundance of choice in a market where prices are 5%-10% lower than 12 months ago.
So if you are a first-time buyer, sit tight, there may be a silver lining amongst the clouds ahead.