Copy article

First time buyers - what are you seeing?

Journalist: Jane Matthews, FTAdviser

ended 23. February 2023

Hello newspagers! 

First of all, I just wanted to say thank you to everyone who has previously provided commentary, it can be difficult to get back to everyone individually but your input is really helpful and appreciated. 

For this one, I'm just looking for a bit of an update on what you are seeing on the ground with first-time buyers at the moment - have completions dropped off a cliff? Have some clients had to drastically reduce their budget as a result of rising rates? If you have examples of recent experiences that would be really helpful.

Recent research shows that there was a drop of 10% in FTB completions in 2022 compared to 2021 - the stamp duty holiday in 2021 obviously had an impact on this and boosted sales in 21, but I'm wondering what we can expect in 2023.

Many thanks, 
Jane

 

4 responses from the Newspage community

Copy all

Copy

Graham Cox
Director at Bridging Hub
We're seeing our self-employed FTB clients reducing their budget and renegotiating prices. Often they simply can't afford as much as they were hoping.

One client has just had an offer accepted on a one-bedroom house at £290,000. They've now decided to try and renegotiate the price with the vendor as it's been on the market since October and the monthly payments are at the top-end of what they can afford.
Copy

Austyn Johnson
Founder at Mortgages For Actors
We have seen a bit of a rise in shared ownership. Maybe its due to the lower mortgage needed, but it actually works out a bit more expensive due to the rental payment and service charge. A lot of my clients are moving back into London, whereas everyone started to move out after lockdown. Maybe the housing is being aimed at FTB rather than existing homeowners...
Copy

Samuel Ewen
Managing Director at Rosehill Financial Services
Although rates have increased, we’re still seeing many first time buyers still keen to get onto the property ladder.

Some of our clients are reducing their budget, which we’re mainly seeing for higher loan amounts. However, the vast majority have accepted that they’re going to have to pay more now.

I think that the amount of first time buyers going forwards in 2023 will increase as people become more accustomed to the relatively higher rates.
Copy

Natalie Hines
Founder at Premier One Mortgages
I work with predominantly first time buyers in the Tv & Film industry and whilst it is noticeably quieter they are still looking to buy as rents are going up making home buying their preference.