While the stamp duty holiday has encouraged many people to enter the housing market, not everyone is looking to buy right now. There is a feeling the stamp duty holiday isn’t beneficial to first-time buyers.
The Government has talked about taking steps to transform Generation Rent Into Generation Buy, but these have yet to be formalised.
We speak with local vendors and buyers in and around Bournemouth. We know how the local market is faring. We also stay in touch with the latest news and studies in the market, and there are ups and downs for FTBs in the market.
There have been positive and negative aspects to first-time buyers in Great Britain relating to the COVID-19 pandemic. YouGov studies have offered a range of findings which dig into how FTBs are facing the property market in 2020.
Many FTBs have benefited financially of late
32% of respondents who plan to buy their first home in the next year say the COVID-19 pandemic has been positive for their financial status. For the whole of the country, this is only true for 14% of respondents.
34% of respondents said they have suffered a negative financial impact, but for FTBs, the figure is lower, at 30%.
People who plan to sell their home within one year are found to have been negatively impacted by the COVID-19 pandemic. 38% of respondents say the pandemic has negatively affected their finances while 16% of this market have experienced an upturn in their financial status.
Mortgage issues might hamper FTBs
While some first-time buyers have expressed positivity in their circumstances, arranging a mortgage isn’t easy. 17% of people who plan on buying a home in the next 12 months have applied for a mortgage. It would be fair to say that the results are mixed.
44% of respondents say the limited choice of mortgages available has made it difficult to arrange a mortgage. For first-time buyers, 53% of respondents has expressed challenges in finding a mortgage. However, in the group of buyers who have previously bought a home, 36% have said they find it hard to find and choose a suitable mortgage.
It should be noted many banks have removed or at least reduced their higher LTV deals. Buyers who are looking for mortgage options with a 5% to 10% deposit have been limited in what mortgages are available to them.
35% of buyers have said applying for a mortgage has been harder because the pandemic has affected their income. 36% of first-time buyers say this and 34% of current homeowners agree.
Of the group who have applied for a mortgage, 20% say the COVID-19 pandemic has made the process easier with respect to cost and 22% say the process has become harder due to cost.