Whether you are buying or selling your home, it is essential to be aware of what first-time buyers are doing. You may be a first-time buyer, you may be a more experienced buyer, or you may be keen to sell your home. However, in 2018, first-time buyers were the largest group of buyers in the UK property market, and this is likely to be the case in 2019 too.
Therefore, the actions of the largest buyers in the UK property market affect everyone in the market. This is why the information provided by Zoopla is likely to be of interest to buyers and vendors alike. A study suggests first-time property buyers are looking to buy a house, as opposed to a flat. Two-thirds of first-time buyers are looking at a more substantial home when they step on the property ladder.
When you exclude the London property market, which is often a sensible idea if you’re looking for more accurate analysis, the figure rises to 80% of first-time buyers looking for a larger home.
First-time buyers are taking out longer mortgages
This change has decreased the gap between the price paid for the by first-time buyers and everyone else. Each buyer is unique and faces the market with their own challenges, but it looks as though more buyers are taking out longer mortgages.
The average mortgage term is now 30 years, whereas a decade ago, the average term was 25 years. The longer-term approach allows more first-time buyers to pass affordability tests.
There is a lot to be said for taking a longer-term approach, especially in the property market. By skipping one step of the property rung, these buyers can save money in the long-term, as they reduce the number of property moves they make. Each property move costs money and takes time. Skipping to a larger home not only reduces costs, but it can also reduce the inconvenience felt by the buyer over a longer-term, which is an outcome most property buyers are keen to experience.
First-time buyers account for a lot of house sales in the UK
In 2018, first-time buyers accounted for 36% of all house sales, so this is a significant segment in the UK property market. For some vendors, this switch in buying behaviour may lead to more buyers showing an interest in their property. If you are a first-time property owner who is looking to sell at some point in the future, you will need assistance finding a likely buyer, and promoting your home effectively.
“We know the importance of first-time buyers, and their impact on the property market,” said Thomas Morris Huntingdon Branch Manager Alastair Smith. “Whether you plan on buying or selling, we offer guidance tailored to your needs, and we look forward to helping you make a move in the property market.”
Selling your home is stressful, but with the right support, you can make the process easier. If you are keen to improve your sales process, we are happy to help. Book a valuation at a time that is suitable to you or; you can phone our Huntingdon branch, managed by Alastair Smith by calling us on 01480 414555.