First Time Buyers Help to Prop up the Property Market

Are you looking at first time buyer mortgages?

Although the housing market has slowed, due in part to the widespread uncertainties surrounding Brexit, there is some good news. The number of first-time property purchases made in 2018 reached 372,100, up by 3% on the 2017 figure.

This means that for the first time since 1995, those making their first property purchase represent a bigger share of the market numerically than those making a second or subsequent move (51% to 49%)¹.

STAMP DUTY COSTS

First-time buyers found their property-owning plans boosted by the Chancellor’s cut in stamp duty announced in November 2017. This means that if they spend £300,000 or less on a property, they won’t pay stamp duty. If they buy a more expensive property, the first £300,000 will be free of stamp duty, provided the price is £500,000 or less. In Scotland, first-time buyers enjoy Land and Buildings Transaction Tax relief that saves them up to £600, whilst in Wales they get no special Land Transaction Tax concessions.

HELP TO BUY SET TO CONTINUE

The Government’s Help to Buy scheme is playing a major role in helping first-timers realise their property goals. Under the scheme, first-time buyers and second-steppers are offered a loan of up to 20% of the price to buy a new-build property of up to £600,000. A London-only version of the scheme provides 40% equity loans.

The 2018 Budget contained details of how the Help to Buy scheme is to operate in the future. Until 2021, anyone taking advantage of a Help to Buy equity loan to boost their purchasing power, can buy a property worth up to £600,000. Thereafter, and for a maximum of two years, only first-time buyers will be eligible to buy through the scheme, and maximum property values will be restricted, with differing figures in place around the country to reflect regional house price variations.

TIME TO MAKE YOUR MOVE?

If you’re thinking of making 2019 the year you buy your first home, it makes sense to get in touch. We can help you make your dream a reality.

¹Lloyds, 2019

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering first time buyer mortgage advice, early retirement advice, pension advice and more. Our clients often come from Uckfield, Lewes, Brighton, Tunbridge Wells, Hastings, Bexhill, Newhaven, Seaford, Crowborough and further afield. Read more mortgage news and other financial advice in our blog.

Please read our VoucherFor reviews here. 

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.

It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.

If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.

The information contained within the blog is for information purposes only and does not constitute financial advice.

The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.