The trends shaping the housing landscape
The journey to owning your first house has become both an exciting and challenging venture for first-time buyers in the UK. Between 2022 and 2024, the market has remained active, with over 350,000 first-time buyer transactions annually, according to Halifax’s First-Time Buyer Review.
First Time Buyer Houses in London
First-time buyers in London typically seek properties that balance affordability, location, and size. Common choices include:
Apartments:
- Studio and One-Bedroom Flats: Ideal for individuals or couples, these units are often found in purpose-built blocks or converted period properties.
- Two-Bedroom Flats: Suitable for small families or those desiring extra space, these offer a balance between size and cost.
Terraced Houses:
- Victorian and Edwardian Terraces: Common in areas across London, these properties provide character and, occasionally, renovation opportunities.
New-Build Developments:
- Modern apartments in newly developed areas often come with amenities like gyms or communal gardens. Some are available through schemes like the First Homes Scheme, offering discounts to eligible buyers.
Shared Ownership Properties:
- Shared Ownership allows buyers to purchase a share of a property (typically between 25% and 75%) and pay rent on the remaining share, making homeownership more accessible.
Guide to First Home Ownership
Our guide to help first-time buyers navigate the journey with confidence.
1. Set a Realistic Budget
Determine how much you can afford, considering your deposit, mortgage payments, and additional costs like legal fees, surveys, and moving expenses. Use tools like mortgage affordability calculators or consult us for personalised advice.
2. Save for Your Deposit
Aim to save at least 5%-20% of the property’s price. Open a Lifetime ISA to boost your savings with a government bonus and consider automating monthly contributions to stay consistent.
3. Explore Buyer Schemes
Take advantage of UK initiatives like:
- Shared Ownership (buy a share and pay rent on the rest), or
- First Homes Scheme (discounted properties for first-time buyers).
More on these below…
4. Get Mortgage-Ready
Prepare your finances by checking your credit score, paying off debts, and organising documents like payslips and bank statements. A Mortgage Agreement in Principle (AIP) shows sellers you’re serious and establishes your borrowing limit.
5. House-Hunt Smartly
Focus on location, property type, and potential future value. When viewing properties, inspect for issues like damp or structural concerns and ask about ongoing costs like utilities and council tax.
6. Make an Offer and Secure a Mortgage
When making an offer, research local property prices and negotiate wisely. After your offer is accepted, choose a suitable mortgage type (fixed-rate, variable, or tracker). We’ll match you with the best deal for your circumstances.
7. Conduct Surveys and Finalise
Arrange a property survey to identify potential issues and confirm value. Once everything checks out, exchange contracts, pay your deposit, and prepare for completion.
8. Plan for Homeownership
Budget for ongoing expenses, including mortgage payments, maintenance, and insurance. Being financially prepared will help you enjoy your new home stress-free.
Government First Home Schemes
Affordable homes are still within reach for many, thanks to key initiatives like the first homes mortgage, which offers reduced market prices for first homes buyers meeting specific eligibility criteria.
Despite fluctuating house prices, the First Homes Scheme continues to provide discounts for eligible buyers, helping more people achieve the dream of purchasing their first homes property. With the First Homes Scheme you may be able to buy a home for 30% to 50% less than its market value. The home must be your only or main residence.
Another government scheme is Shared ownership is a popular option for first-time buyers looking to purchase a home in London. Under this scheme, buyers purchase a share of a property—typically between 25% and 75%—and pay rent on the remaining portion to a housing association. This approach reduces the upfront deposit and mortgage required, making homeownership more accessible for those with limited savings or household income.
Buyers can gradually increase their ownership through a process called “staircasing,” allowing them to purchase additional shares of the property when financially viable. Shared ownership properties are often new-build homes or part of affordable housing schemes in desirable areas, providing a chance to live in communities that may otherwise be unaffordable.
Eligibility for shared ownership depends on factors such as household income (usually capped at £90,000 in London) and whether buyers meet specific criteria, like being key workers or first-time buyers. This scheme offers an affordable route to secure a first home, with the flexibility to scale ownership over time.
These schemes often prioritise key workers and individuals with ties to the local community, providing a valuable first step into property ownership. Additionally, households with moderate incomes have benefited from tailored repayment plans, enabling smoother moves into their first homes.
Let Greenacre Help You Buy Your First Home
For those navigating the complexities of house purchases, Greenacre Financial Services is here to help. With access to a wide range of mortgage lenders, Greenacre can assist with finding the right mortgage for you, ensuring monthly payments and repayment terms suit your household income.
Whether you’re saving for a deposit, exploring government schemes, or considering a home exchange, we’ll guide you through each part of the process for a smooth move.
Taking your first step onto the property ladder can seem daunting, but with expert support and flexible financing options, affordable homes are within reach. Start your journey today with Greenacre Financial Services and make your move into a home you’ll love.
For more information about any of our services, or if you have any questions about first time buyer houses, get in touch or call us on 0203 3939 222.
