The Bank of England is expected to cut interest rates shortly, which should lead to some improved mortgage deals for first time buyers who may have previously been frozen out of the market. The housing market is reasonably buoyant on the back of the change of government, and estate agents report that there’s a good choice of properties available.
Therefore right now might be a good time for first time buyers to begin their property search.
Meanwhile, from 31 March next year, the threshold for paying stamp duty will fall from £425,00 to £300,000 for first time buyers. For all other buyers, it will be reduced from the current level of £250,000 to £150,000. This is Money reports that this means around 93 per cent of buyers will have to pay stamp duty, compared to the current level of 70 per cent.
Jeremy Leaf, the former residential chairman of Rics, commented: “As the deadline looms, first-time buyers need to ensure they are ready to act quickly having spoken to a mortgage broker and getting their finance and legal representation lined up.”
However, Leaf warns against the dangers of rushing into a property purchase in order to avoid paying stamp duty, only to regret your choice after the big move.
He counsels: ‘There is nothing worse than buying in haste and repenting at leisure, so you don’t want to buy a property in order to save a few thousand pounds on stamp duty if it turns out that you weren’t that sure about it in the first place.’
Tips for first-time house hunting
House hunting can be an exciting but daunting prospect, especially if you are buying your first home. It can be difficult to make a choice with confidence: if you are too particular about the type of property you want and have a long list of ‘must-haves’, you might be letting yourself in for a long and frustrating search as house prices continue to rise.
On the other hand, you might feel pressured into settling for a property that you know deep down isn’t right for you just for the sake of getting on the mortgage ladder. It can be a difficult balance to strike, and it’s helpful to write down your wish list. Divide it into essentials and those areas you are willing to compromise on.
Always view the property in person rather than relying on photographs or video tours, because while these are valuable, they will not paint the whole picture. Research the neighbourhood and visit it at different times of the day. Does it meet your expectations and needs in terms of amenities, and access to transport and open green spaces?
Talk to local estate agents and let them know what you are looking for, as they may be able to alert you to new properties before they are more widely advertised.
