Despite rising house prices we have seen first time buyers coming back into the market place. During 2016 levels reached 335,750 – the highest since the financial crises. First time buyers are like the corner stone of a building in keeping the property market afloat, so this is really good news.1
According to Halifax nearly half of mortgages taken out last year were given to first time buyers.
The average house deposit is £33,00, making it impossible for the average first time buyer to get onto the housing ladder. However the Government’s Equity Loan Scheme has given first time buyers and home movers the opportunity to put down lower deposits, keeping the entry end of the market buoyant.
In the past couple of years the Government has also been targeting Buy to Let investors, making it harder to claim expenses and giving less tax relief.
The Government is also discussing making it harder for foreign investors to invest in UK property, which they say will make it easier for first time buyers. Although these measures are currently unknown the Government have said they will probably be revealed in the Autumn Budget on the 22nd November 2017.
“There’s an issue in London with a large proportion of new-build flats being purchased off plan by particularly Far Eastern buyers – China, Hong Kong, Singapore, Malaysia," a Whitehall source said. 2
“They are bought when the flats are still under construction, meaning first time buyers don’t get a look in. That is not just in central London, but in the suburbs and other cities such as Manchester.”