Increase In Transactions For First Time Buyers

The property market in the UK continues to climb year-on-year, as a result of first-time buyers making more activity, and general growth in the market.

According to the professional trade body Propertymark, the proportion of first-time buyers who made a purchase in August 2021 was 28%. This was an increase from July 2021. This figure was also the highest percentage of new buyers in the property market since 2016.

The reason for this is simple.

Demand for new homes continues to remain consistent throughout every region of the UK due to the first time buyer increase. It’s estimated that there are roughly 15 to 20 buyers for every property on the market. With such high demand, it’s not difficult to see why there are more new buyers entering the market all the time.

Generally speaking, the cheap borrowing rates available for mortgages and other schemes allow first-time buyers to enter the property market. The base rate set by the Bank of England for borrowing rates is usually around 0.1%, which means that it’s possible for borrowers who have lower deposits overall to secure more competitive deals.

In 2021, it was possible to secure an average rate on a two-year fixed mortgage of 1.99%. This was possible with just a 15% deposit. However, it is worth noting that property prices do rise over time in many parts of the country, and there is a lower level of available houses on the market. There are too many people and not enough homes, which is why schemes are introduced all the time to help provide more stable access to housing.

To help with the housing shortage, the UK government did introduce a £300m fund called the Housing Growth Partnership. The partnership is a joint initiative between Lloyds Banking Group and Homes England. The goal is to provide funding to small and medium house building companies in the UK.

The scheme was created with the ultimate goal of creating 10,000 new homes by 2025. There was a scheme of a similar nature launched back in 2016, which was built to reflect the more diverse housing needs of the UK at the time, which were primarily build-to-rent properties and retirement living developments.

However, the new scheme focuses more on sustainability. This is the kind of project which talked more about using modern construction methods, and helping to create national standards for sustainability because 2020 to 2021 were primarily the years in which people began to take more notes of the growing climate change problems.

Prime examples of the project included retrofitting more than 240,000 homes in the social housing sector to help make them more energy efficient, and the fund was available to developers whose projects had a value of up to £75 million. Since the launch of the scheme, there were more than 50 housebuilders that were helped and added in the delivery of more than 5000 new homes. Naturally, those numbers continue to rise with time.

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For more information about any of our services, or if you have any questions regarding the first time buyers increase, get in touch by calling us on 0203 3939 222.

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Hannah D
Hannah D
07:42 09 Sep 19
I would fully recommend Greg and Greenacre Financial Services. As a first time buyer I was daunted by the process of... finding the right mortgage for me however Greg made the process really simple, clear and quick. He was always available to answer any questions and happy to explain everything. I wouldn’t hesitate in recommending Greenacre FS to my friends and more
Jessica Cohen
Jessica Cohen
19:33 26 Aug 19
We first met with Greg in May for advice as we had adverse credit and irregular pay and didn't think a mortgage was in... our reach. Less than two weeks later Greg had fully arranged a great deal for us on our first mortgage. He was available whenever we needed him, 7 days a week and in the evenings. We cannot thank Greg enough for helping us buy our first home!read more
Seren Fletcher
Seren Fletcher
08:56 24 Aug 19
Would highly recommend Greg and Greenacre Financial Services. Was extremely professional and helpful. Our mortgage... wasn’t straight forward due to my husband being self employed but Greg was very knowledgable and managed to find us a really good mortgage. Looking forward to working with him again in the futureread more
13:24 23 Aug 19
Graham at Greenacre was excellent in helping me get a mortgage for my house purchase. He was always available when... needed, provided an efficient service and was very knowledgeable. Highly recommended!read more
Ian Hatter
Ian Hatter
11:07 16 Aug 19
What can I say, Greg has been absolutely amazing in sorting out a mortgage for me I never thought was possible. It has... meant I have been able to buy a house, a few months ago, I would never have dreamed of being able to buy after talking to high street lenders. He worked exceptionally hard and always kept me updated with every step of the process. Buying a house is extremely stressful, but Greg took all that stress away from me. I cannot recommend Greg enough to anyone looking to buy a property. Thank you so much for your help Greg, it's greatly more
Sean Kelly
Sean Kelly
15:27 30 Jul 19
10/10 EXCEPTIONAL service and result. Highly recommend. Greg and the Greenacre Financial Services team were fast,... knowledgeable, and honest. All the qualities you want and need. Very pleased I was recommended to Greenacre. Customer for life!read more
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