First-time buyers purchasing homes at highest level for over a decade

In this month's edition, we investigate why first-time buyers are purchasing homes at the highest levels seen for over a decade. 

We also look into why it's set to be a busy Spring for the property market this year! Not only that, but we're on hand to offer our top tips for anyone looking to rent a new home whilst lifting a lid on Queen Elizabeth II's stunning, billion-pound property portfolio.  

First-time buyers purchasing homes at highest level for over a decade

 

The number of first-time buyer mortgages has reached its highest level for 13 years, with some 370,000 new first-time buyer mortgages completed in 2018. Official trade body UK Finance has released data which shows that the highest number of first-time buyer mortgages since 2006 was reached last year, underlining the fiscal viability of purchasing a home for first-time buyers.

This consistent increase in the number of first-time buyers entering the property market can be seen as a result of; government schemes, greater mortgage availability and fewer rental properties on the market. Government policy has consistently targeted buyers who are keen to enter the property market primarily through their Help-to-Buy scheme and financial aid to first-time buyers, whilst competition amongst mortgage providers has brought a greater variety of finance options to the market. Amongst these mortgage varieties, we have seen more providers offering the 100% mortgage (or Loan-to-Value) and variations thereof, thereby opening up property to more people than ever before.

Richard Campo, managing director of Rose Capital Partners, said: “Lenders have been making it easy for first-time buyers over the last couple of months, with several providers announcing reduced rates on high loan-to-value mortgages. There are currently over 17,000 products available for first-time buyers.”

Twinned with the influx of mortgage varieties, and mortgages demanding a lower deposit value, is the reduced cost of these lower-deposit mortgages. The average two-year fixed rate LTV mortgage has fallen by over half a percent since last August, and big brands are also reflecting the consumer desire for LTV mortgages with Barclays, HSBC, Lloyds Bank, NatWest and Santander all cutting their rates.

Yopa chief property analyst Mike Scott agrees: “Since FTBs drive the whole housing market, allowing home movers to find a buyer and take the next step on the ladder, this is good news for the whole market,” he says.

In fact, the Halifax bank has recently found that first-time buyers are now so active in the marketplace that they make up the majority of home purchases bought with a mortgage in the United Kingdom. Based around the same UK Finance statistics, Halifax has found that the average price of a typical first home has jumped by 39%, from £153,030 in 2008 to £212,473 in 2018 with terraced houses and semi-detached remaining the most popular choices for first-time buyers.

After a chilly winter, a busy Spring is in store for the property market

 

Spring has always been a popular time of the year for buying and selling properties, with the change from the colder months of winter to the warmer spring temperatures often galvanizing people to make a change. This year is forecast to be no different and spring 2019 is set to be a busy time for estate agents across the UK.

Recent analysis from The Advisory, an independent advice service for house sellers, has shown that March is statistically the best month to sell. The average amount of time taken to sell in March stands at 57 days, compared to other months later in the year at 79 days. With gardens starting to bloom, the weather becoming fairer and properties looking at their best, it is no surprise that spring is at the top of the list for when to sell a property.

Of course, spring 2019 is a little different than any of those prior due to the uncertainty that lies around Brexit. Although it may seem like the political climate could be a hindrance to property sales, there are many indicators which would suggest quite the opposite, with spring 2019 actually buoyed by Brexit.

There could indeed be somewhat of a surge after 29th March from potential buyers and sellers who have waited for the Brexit date to pass before they enter the market, and with supply and demand already at their highest levels for over a decade, this would see the property market in a particularly strong period.

Twinned with the historically low-interest rates, and the most flexible mortgage offerings ever provided by the banks, buying a property this spring will be on the minds of many and could indicate something of a renaissance for the property market, which has proven to be stable rather than spectacular in the last few months.

 

Queen's billion-pound property portfolio revealed

 

Given the vast wealth of the Royal Family, it certainly shouldn’t come as a surprise to hear that Queen Elizabeth II’s property portfolio spreads the width and breadth of the British Isles. Yet figures released by the Crown Estate last year paint a picture of a stunning property portfolio, almost incomprehensible in its wealth.

At present, the estate is valued at an astonishing £13.1 billion, even though the Queen herself doesn’t own all of the property associated with it and whomever sits on the throne isn’t able to sell parts of it off at will. Properties themselves can be split between those owned by the Queen herself and land that falls under the control of the Crown Estate itself; any monarch won’t receive revenue from this property.

Still, the magnitude of some of the properties contained within the estate is remarkable, with 7,936 plots owned and land of their own within 271 of the 342 districts across England and Wales ranging from grand hotels to historic castles. They feature:

Sandringham House
Inherited from the Queen’s father and located in Norfolk, Sandringham House is a 20,000-acre estate which passed to her when George VI died in 1952. It’s typically where the Queen spends her winters and was the setting for her first televised Christmas message.

Palaces
The Crown owns several palaces across London, including, unsurprisingly, Buckingham Palace, Clarence House and St. James’ Palace, all of which are maintained by the Royal Household Property Section. That will offer clarity for those of you who may have wondered how the Queen and her family were able to keep up with what will surely be an astronomical amount of tidying up.

Castles
What’s a monarch without their castle(s)? The Queen and Prince Phillip spend the majority of their summer at their 20,000-hectare Scottish estate Balmoral Castle in Aberdeenshire, but can also lay claim to Lancaster Castle in Lancashire, Pickering Castle in Yorkshire and Hillsborough Castle in Northern Ireland, to name but a few.

Beyond this, the Crown Estate also owns the site for the world-famous Gold Cup, Ascot Racecourse in Berkshire, the entirety of Regent Street and St. James’ Market in London, around 263,000 acres of farmland across Great Britain and, funnily enough, fishing rights in Scotland. That means that any of you fancying a trip north of the border to catch whales and sturgeons could find yourself in hot water with the Crown, as these are designated ‘royal fish’ and will presumably be less-than-impressed with being caught.

For more information on the Queen’s gigantic property portfolio, please click here for more details.

Read our top tips if you're thinking of renting a property

 

With 2018 being proven to be the best year for renters for a decade thanks to increasing wages and static rents, we’ve put together 10 tips to help you in your quest to find the perfect pad.

1) Clarity is key!
Knowing exactly what you’re looking for is key to your success when searching for a property; there will always be plenty of choice in terms of location – but that can also be a hindrance if you’re not sure what you’re looking for. Make a list and prioritise your needs; is it proximity to a specific place, public transport or local facilities that is the most important to you?

2) Poirot your property search!
Investigating the process by asking the people you know is always a good way to glean information that you may not otherwise be privy to. Ask your friends, family and colleagues about where they live, areas they like or where they would like to move to and it may well help you to find an area that you didn’t know about.

3) Sharing is caring!
If you are thinking of renting, then the initial costs may be daunting and therefore sharing the charges may be the right move for you. Having a housemate can have many benefits in terms of companionship, security and shared responsibility; however, the more tangible benefits are the financial burden being reduced. You may also be able to afford a larger property in a better area and have the benefit of a new friendship thrown into the deal.

4) Budget is king!
Remember, a month isn’t four weeks long – often the time between pay packets can be five weeks long – and that is one of the many things to keep in mind when considering how much you can afford. Making a budget and knowing how much is sensible, without stretching yourself too much, will be a key concern when you rent your property. Don’t forget the basics either, such as Wi-Fi, TV licence and your utilities (gas, electricity and water) – make sure these are all a part of your budget when searching for the perfect property.

5) It’s a sprint, not a marathon!
This one might seem counterintuitive; however, the rental market moves incredibly quickly, and therefore if you have found a property which you have a genuine interest in then moving with haste is the only option. Regularly check the advertisements for new properties, and ensure you engage in all of the communications from your estate agent so that you don’t miss out on a potential gem.

6) Preparation is key!
As we’ve just mentioned, the rental market is a fast-moving sector, and therefore being prepared to move quickly will allow you to make the right move at the right time. Be prepared by ensuring you have your deposit and initial rent saved up and ready to be handed over to secure the property, as well as having references organised.

7) Rights and responsibilities
Before signing a rental contract, familiarise yourself with your legal rights and responsibilities as a tenant. These are set out on the government’s website. And don’t forget to ask about a break clause in case you find the property is not right for you. Read your contract carefully, if it gets to that, and remember that it is there to protect your rights as much as the landlord and estate agents.

8) Keep ‘em sweet!
Once you have made that step and rented a property, the importance of maintaining a good relationship with your landlord and estate agent cannot be overestimated. Respect the property so that the landlord has faith in you, and you will foster a nice, easy relationship for years to come.

9) Lights, Camera, Action!
Once you’re in the property that you have rented, a recommendation from us would be to take extensive pictures of the property – all of the walls, floors and kitchen/bathroom so that you have a point of reference when you move out. These may come in handy when you have the discussion around getting your security deposit back – being able to show the state of the property initially will prove you have treated it well. Similarly, taking photographs of meter readings will be useful when you are paying for your utilities as these will show the point at which your bills should start.

10) Leave the door open!
When you have decided that the rental property which you’re in isn’t fit for purpose anymore, don’t burn any bridges by leaving it in an untidy state or parting on bad ways with your estate agent. Remember, we all need somewhere to live and you will more-than-likely be working with these people again in the near future to either rent another property, or to buy a property, and therefore having an established relationship with them will reap rewards for your future self.