Is the property market stopping first-time buyers?
A lack of homemovers has led to a stagnant property market, thwarting the attempts of first-time buyers to get on the property ladder, according to research from Lloyds Bank.
The study found that just 51% of sales in the first half of 2017 were from homemovers, a drop of 13% from a decade ago. In fact, only 171,300 homeowners purchased a new home before the end of June.
Why does this affect first-time buyers?
With fewer homes for sale, there is less room to trade up but it is also more difficult to even get on the ladder. With people not upgrading, there id a shortage of homes for any first-time buyers.
Andrew Mason, the mortgage products director at Lloyds Bank, said that he felt more people were both paying their mortgages off and being put off moving by the costs involved.
Should we be worried?
The really interesting thing here is that whilst this seems to be a national trend, we’ve actually seen sales in the north of England go up 11% year-on-year, so there is some good news - particularly in this region.
So what exactly is happening?
With no equity on the board, first-time buyers need a sizeable deposit to put down on their starter property. But, anyone trading up has also seen a rise of 40% in the deposit they need.
Overall, the cost of an average property bought by a homemover has gone up almost £85,000 to £290,991 with stamp duty also going up - it would be £4,500 on that property price.
Is it a bad time to sell?
As we’ve mentioned, sales in the north are going up and our Property Launch service sees customers sell 47 days quicker and for almost £7,000 more. We’ve just moved our 1,000th customer using this method, so it truly does work. Check Ian Preston’s latest market update for all the information.
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