How to Buy Your First Property
A third of all new property sales are going to first time buyers, but how are they doing it? For years, it has been repeated that the younger generations will find it increasingly difficult to buy their own home.
So has the market changed, or are people becoming savvier?
It is estimated that around two thirds of first time buyers get help from parents and other family members when planning to buy. However, many people don't have this luxury.
The government has a Help to Buy scheme which can help first time buyers get the help they need by allowing them to use a deposit as low as 5%
. There is also a NewBuy government scheme that offers lower deposits on certain new builds.
Be Careful With Your ISAs
In the 2015 budget statement, it was announced that a Help to Buy ISA will be available from the autumn of this year
. For every £200 you put in the account, an extra £50 will be added by the government. The maximum given will be £3,000 if you save £12,000
. You can also have individual savings accounts if you and your partner are looking to buy, which means you could have help of up to £6,000.
It is important to remember that you can only open one ISA in each financial year. This means that if you open a new ISA account from April 6 2015, then you won't be able to open a Help to Buy ISA in the autumn when they become available.
Understanding The Market
A report by the National Association of Estate Agents
found that 30% of house purchases in February this year were by first time buyers
. This is the highest amount of first time buyers recorded since 2009, when their records began.
Lisa Gibbs, our Partner and Head of Residential Conveyancing
adds, "This is certainly encouraging for first time buyers. Hopefully this means that the market is becoming less hostile, and beginning to understand the difficulties people face when trying to buy. We would ideally like to also see higher quantities of more affordable properties on the market."
Get The Right Advice
Buying a house for the first time can be daunting. For first time buyers, it can be a process
that you know little or nothing about. Getting the right advice will help ease your mind as you'll know that the process is in good hands.
Lisa, who is based in our Manchester office, concludes:"Planning to buy your first house can be very exciting, but the process can be nerve wracking and overwhelming for first time buyers. Getting the right legal advice is important because we understand that little things like breaking down any jargon, and keep things well organised, helps make the process run as smoothly as possible."