5 Reasons First-Time Buyers Should Buy Now

It is hard to see the complete picture of what a post-pandemic property market will look like right now as the country eases it self out of lockdown, but what most property experts can agree on is that if you are a first-time buyer with a secure job you should be house hunting right now, despite the Covid-19.

1. Property Investors Have Taken A Back Seat
Investors are currently reluctant to purchase more properties due to the Government guideline that put an outright ban on tenant evictions, because of the financial hardship many people are facing because of the pandemic. Traditionally investors and first-time buyers are attracted to similar types of properties; houses situated in towns on the outskirts of large cities in a smaller price bracket – less investors means less competition. Less investors also means the market has slowed and prices aren’t being pushed up, which is a perfect environment for first-time buyers.

2. Interest Rates
Interest rates are low, very low in fact, so for first-time buyers it’s never been cheaper to pay off a home loan.

3. Sellers Are Willing To Meet The Market
It is no secret that the property market slowed to almost a standstill during lockdown, with sellers fearful of both the possibility that property prices might crash during the pandemic and of course of letting potential buyers in to view their home due to the risk of the spread of covid-19. These sellers are now ready to move and are prepared more than ever to listen to offers, especially from first-time buyers.

4. The Large Lenders Are Now Eager To Lend
When the UK first went into lockdown lenders started withdrawing mortgages with LTV ratios higher than 60 per cent. This was not because lenders predicted a crash in house prices, but because offices had been inundated with requests from existing customers wanting to take mortgage holidays, and social-distancing rules had made valuations difficult. The large lenders have now started offering higher LTV mortgages again, if they didn’t they would have caused a crash in the property market that they are trying so desperately hard to avoid.

5. Government Affordable Home Ownership Schemes
The Government affordable home ownership schemes, ‘Help To Buy’ and ‘Shared Ownership’ are still available despite the lockdown caused by Covid-19.

Share this article