The research data showed that 43 per cent of all homebuyers in the past year were first time homebuyers. This figure is 6 per cent more than the number of first time homebuyers who entered the property market in 2014.
And you know what? Things are set to get better because property prices for houses sold to first time home buyers are also dropping in record rates.
According to the same research, first time home buyers paid only 75 per cent of the average house price. This means that average homebuyers paid (£269,000) for a standard property, while their first time home buyer counterparts paid only £202,000 for their first home.
Analysts say that although there is a marked difference between prices for regular buyers and first time homebuyers, first time homebuyers in 2015 paid more for their houses compared to other FTBs of the previous years. However, this can’t be helped due to current inflation rates.
Rob Houghton, CEO of Reallymoving.com, said that seeing more people enter the property ladder is a good sign for the market, but it would be better if this growth is seen around the UK and not in certain places only, since extreme property prices in certain areas still make it impossible for first timers to buy a property.
Mr. Houghton suggests that government assistance could be a great help for first time homebuyers, but while these programs are being sorted out, FTBs can find a solution for their property dreams if they start a close look at their finances.
Rick Otton, a property investor known for unique investment strategies, offers another solution on how first time homebuyers can enter the property easily and that is to try seller finance!
Mr. Otton says that seller finance is perfect for people who are having a hard time getting a loan from the bank. He explained that instead of taking out a new bank loan, the buyer may negotiate to assume the existing financing and pay the remaining equity in increments.
This presents a “win/win” for both parties, because it makes the process more convenient and less time consuming for the buyers, while a seller will be able to move away from unwanted debt much more quickly!
Analysts say that this influx of first time homebuyers is the product of record low mortgage rates, cheap property for sale, and greater choice for small-deposit holders. I hope that this trend continues, so that more families can finally reach their dream of owning a place of their own. If ever market circumstances change there’s no need to worry, because there are other ways to get in the market such as what Mr. Otton suggested.