What Is The Current State Of The UK Housing Market? Tips To Help Get You On The Property Ladder
One of life’s milestones is buying your first house. The reality can be a bit more daunting than the dream, however. Official figures from the Office of National Statistics show that the average house price is currently £264,000 and that there is a higher demand for houses than actual houses for sale.
Compared to the past, buying a house is harder than ever. In 1981 almost one in three 16-24-year-olds was a homeowner, whereas in 2016 it was closer to one in ten. That being said, owning your own home is not impossible. Here are some tips to help you plan for your future dream house.
Savings and finances
Preparation is key when purchasing your first home. Start by getting your savings and finances in order. Prioritise paying down any debts and remember to start with the higher interest debts such as credit cards. Mortgage lenders will consider how much you spend on credit per month to help them assess the type of mortgage you can afford.
Creating a savings account is another great step to take as it will allow you to start saving for a deposit. Typically, a deposit is 10% of the property value.
Financial security
To have a mortgage you will need to be able to demonstrate that you have a stable and secure job with evidence of good credit history. If you are currently unemployed and waiting for a particular opening or industry then this could work against you in the long run.
Most lenders will want to see that you have been in your position for at least six months for them to feel comfortable lending to you.
Researching the market
The housing market is a vast and varied place and only a percentage of what is for sale will suit what you are looking for. Make sure you do your research before committing to putting an offer in. A top tip is to visit an area you are interested in at different times of the day to get a feel for how busy or noisy it can get at commuter times or during the evening.
You should also consider the history of a house. Older houses tend to come with repairs or previous issues whereas new builds are just that – new. You could look in the area at new build houses for sale. As a first-time buyer, the process with these can be tailored to help you take a step up the property ladder.
In case you are looking for a cosy apartment to rent in the vibrant Liverpool region you can easily explore a variety of affordable rental options with Rent Hero Company in this bustling city, from modern city centre flats to charming suburban homes.
First-time buyer help
There are plenty of schemes out there to help first-time buyers. 100% mortgages have just started to be offered again for the first time since 2008. Skipton Building Society has opened these up again to help people who cannot save due to rental payments and the current economic crisis.
A Lifetime ISA is also an option for first-time buyers. If you are aged 18-39 and can put in up to £4,000 per year, the government will by adding 25% of what you deposit into the ISA as well. This could mean up to £1,000 extra per year.
