First-time Homebuyer? Check Out These Expert Tips of Buying a Home
Property has long been a popular way for investors in the UK to hold and grow equity. In previous decades, the appeal of buying a home has meant overseas investors have become even more prevalent.
The immediate knock-on effects have been felt in London. The homes sitting empty with their only purpose to accrue value over time were perfect examples of the effect.
The effects of overseas investors are just one of the many factors affecting the UK housing market in 2024. For those looking to move or a first-time home buyer, the factors hindering their moves can seem endless.
If you’re looking to buy a home in the UK, what can you expect, and how can you avoid overpaying?
Understanding The Property Market In The Uk
The UK property market has been showing a dynamic and complex landscape. Factors like economic conditions, regional activities, and government policies significantly impact the UK property market.
Thus, it has become crucial to understand the elements before looking for a property to buy in 2024. It can be about buying a home or your long-term investment.
The Economic Factors
The UK and its economic factors greatly influence the property market. Everything significantly impacts on property prices and mortgage availability, from interest rates and inflation to employment rates.
Additionally, in 2024, the UK economy expects very moderate growth and unstable interest rates.
However, you should watch all the economic forecasts if you are a potential buyer. In addition to that, it would be helpful if you stayed prepared for unforeseen changes as it might affect your purchasing power.
Government And Their Policies ‘
There are several government policies related to housing schemes and stamp duty regulations. These can be influential on the property market.
For instance, Let’s take the Help to Buy scheme as an example. The scheme has been extended to 2024. It mainly helps first-time buyers with equity loans. Thus, it becomes easier for them to climb onto the property ladder.
In addition to that, the changes in the stamp duty thresholds positively affect the purchasing cost. So, it would help if you kept yourself informed about all the policies that can help you make further strategic decisions.
Regional Activities
If you research, you will realize that the UK market is not uniformly distributed. The market varies from one region to another. For example, property prices are comparatively higher in the south and east parts of the UK and London.
On the contrary, the prices are comparatively low in northern England or Wales. If you plan to buy a property in another region, you must understand the differences to identify the best values.
Things To Consider While Buying A Home
If you plan to buy your first home in the UK, here are the things you must consider. Read on….
Lean on experts
Unless you are a seasoned veteran in the property sector it’s likely that help when buying will be crucial. In a time where British house prices are more volatile than ever, turning to those who are experienced in the market in their day-to-day roles is vital.
For many, selecting an ‘expert’ means finding an estate agent that can assist in the selling of your property, and if you employ them to sell it’s highly likely you can sway some free advice from them with regards to new properties you are exploring.
Furthermore for those looking to upgrade or get a mortgage for the first time then a dedicated mortgage advisor is a great way to garner unobjective advice.
As with any expert, it’s vital to ensure that the advice you’re receiving is correct, in the UK many have professional indemnity insurance for estate agents or the equivalent for professions such as letting agents.
In the event they are to give you incorrect advice, such as underselling your property based on the market at the time, then you may be able to use their cover to claim back damages.
Accept that there is never a ‘perfect’ time to buy or sell
While there is plenty of foresight to be taken before you decide to buy or sell a home, it’s vital to accept this will only get you so far.
In 2020 and 2021, the UK house price continued to rise as the months went on; using the Stamp Duty holiday to keep the market moving during COVID only added uncertainty on the best time to move or buy.
Even now that the scheme has ended, the average house price in the UK continues to rise, and experts believe that in 2024, house prices will increase by a further 5%.
The rapid growth means that if you plan to buy next year, it may be more effective to accept that you can never really beat the market.
For first-time buyers, patience is a virtue, and waiting for the post-COVID stability of the housing market would be better.
The nature of buying a home without having one to sell means you are more likely to be able to jump when the market is where you need it to be.
Ensure you understand all the costs and your potential restrictions
If 2024 is your year to move, it’s best to understand what you can afford before browsing.
Mortgage lenders have even more specific criteria to outline what they will loan you, and falling into a category such as being self-employed can mean your opportunities are limited.
Furthermore, while borrowing has become more accessible compared to the original peak of COVID-19, many providers are still capping LVT at around 80-85%.
Again, first-time buyers will likely have more difficulty finding a new home than current homeowners.
The added Stamp Duty is only applied to some house sales for first-time buyers, a crucial cost to consider when buy a home. Rates vary depending on your purchase price and area.
Other costs to consider as part of your final house price include the estate agent’s commission and the cost of professional removals.
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