Positive times for the first-time buyers
Arguably the recent stamp duty changes have been introduced to orchestrate, from a price perspective, a less volatile property market. The leveling of prices certainly seems to have occurred from the bottom of the market up to properties below £2,000,000.00. The market above £2,000,000.00 still seems very soft with the number of properties being sold vastly reduced and where they are selling, they are doing so at hugely reduced prices from the height of the market.
Government policy also now seems to be becoming more co-ordinated in ensuring that new housing will be built in good numbers. Many of these are likely to be one and two bedroom flats/houses. As an example, in Surrey, Woking Borough Council is talking about there being 10,000 one and two bedroom flats in the town on completion of the massive regeneration works currently being carried out. This number is a marked increase from the current number of flats in the town.
Capital growth is likely to be limited if there is such a choice from which to purchase. This suggests that first-time buyers will be better placed to purchase.
Add to the mix the latest first-time buyer stamp duty exemptions, the Government’s scheme to assist first-time buyers with equity shares and developer’s similar equity schemes, the future is looking far rosier for first-time buyers than it has for a generation. Although the equity schemes benefit the provider as well as the property owner, any share that the property owner obtains as a result of the property price increasing has to be positive.
In addition social housing, otherwise known as shared ownership, will also play a key role in making buying a property more attractive and easier for the first-time buyer. Although any increment in the value benefits the housing association who retain a share in the property, the owner will also benefit on the % they purchase.
New ideas are also bound to surface as the next few years pass by especially as the current generation of first-time buyers who have suffered so badly look to take influential positions in decision making organisations. They will be able to look at the problem from their own perspective, with difficult attempts to jump on the property ladder.
This is not legal advice; it is intended to provide information of general interest about current legal issues.