The Future for First Time Buyers in the Property Market

Being part of the wider construction and property market, it is vital we are up to date with the current housing market to be ensure we can respond quickly to market changes and, ultimately, ensure our continued workload and contribute to the supply of new homes. The housing market can fluctuate with many highs and lows, but as of recent times shown some negative trends.

The past few years has seen some significant influencers on the market with the domino effect of Covid, the Ukraine crisis and economic decline reducing the morale of soon to be first-time buyers (FTB’s) in the UK.

U – Switch recently took part in a survey of 2,000 renters. The core question aligned with their opinions on the current housing market. When asked if they worried for house prices due to inflation vs whether declining house prices was a hopeful sign.

Less than half (41%) said they planned to buy within the next 5 years. With the ages 25-34 (61%) being the most eager. Although these percentages are not exceptionally low the high prices followed by a large deposit has stopped many FTB’s.

Even more interesting, only 30% of those under 35 are using schemes such as the Help to Buy ISA and First Home Scheme. 1/5 of those who took part in the survey were also involved with the mortgage guarantee scheme. It was also noted low-income workers were less likely to buy their own home!

The Government’s decision to remove Help to Buy ISAs was implemented in November 2019 meaning those who had not opened an ISA were now unable to do so. This is not ideal news, nor is the current average house prices in the UK, averaging at £294,910. This £40,000 increase since 2018 on an already significant amount of money is in many cases an inconceivable amount.

With housing prices reaching these heights in addition to high interest rates, a decrease in demand is likely, and we are seeing a number of housing developers slow down on their larger sites.

However, RDC are seeing more opportunities coming forward to support FTB’s and lower cost housing – such as bringing forward NPPF Paragraph 72 development sites in partnership with landowners, and working closely with affordable housing providers to deliver low cost routes to housing ownership, and providing more opportunities for lower income earners.

RDC also offer full design packages for housing ranges, designed specifically to be cheaper in today’s market whilst still maintaining a high standard and energy saving techniques to help contribute to both the 2030 climate challenge and reduce the cost of living for homeowners.

We have many case studies and examples on our website which detail our affordable housing alongside other house designs we have curated.

Written by Georgia Johnson (Design Technician)

Article Source: Lower-income FTBs are least likely to use government housing schemes | Property Reporter