New data, based on the housing costs associated with a mortgage on a three-bed home versus the average monthly rent of the same property type, has revealed that first-time buyers are now £800 a year better off than renters.
The old Help to Buy equity loan scheme expired last month, replaced by a similar government scheme that launched at the start of April. This new and enhanced version of H2B is restricted to first-time buyers and includes regional property price caps to ensure ‘it helps those who need it most’.
No sign of the market cooling down just yet as newly released data reveals that homebuyer demand for conveyancing quotes was 101% higher at the end of March than the average for the same period during the last four years.
Currently, we have a vibrant property market that is fuelled by buyer incentives, enticing first-time-buyers to take their first step on to the property ladder. But just how much does owning a home actually mean in comparison to other life aspirations today?
Now is a unique time for first-time buyers hoping to get on the property ladder. The Governments introduction of their low deposit mortgage guarantee scheme means the Government will guarantee loans to buyers worth 95% of the price of a property, up to £600,000.
With the announcement of the recent budget, Rishi Sunak confirmed the introduction of a mortgage guarantee scheme requiring deposits of just 5%.
Despite the stamp duty holiday extension stealing the headlines in this afternoon's budget, the other major announcement for the property market was the confirmation of the new mortgage guarantee scheme, set to launch from April.
‘Holiday’ has seen house prices rise beyond capacity of first-time buyers, favouring owners over renters, campaigners say.
Rishi Sunak is facing calls to scrap stamp duty completely rather than extend the current holiday in his budget next month.
Despite the usual challenges of saving for a deposit and high rental costs being further compounded by the pandemic, new research from Aldermore has revealed that almost half of the UK's renters have not given up on their dream of being a homeowner.
Whilst recent changes to the stamp duty threshold has led to a growing number of people looking to make the most of the tax break and make a property purchase, there are a number of points to consider before applying for a mortgage.
The latest version of the help-to-buy equity loan scheme opened on Wednesday, with first-time buyers now the only people allowed to apply for government assistance to get on to the housing ladder.
Albeit slightly historic, this morning's figures from the Land Registry paint a picture of a housing market that has certainly done more than just survive lockdown.
Accord Mortgages has announced that it is launching a new range of Help to Buy products, further increasing its support to first-time buyers.
Homes England has announced that the new Help to Buy: Equity Loan scheme will launch next month, with first-time-buyers able to apply from December 16th.
Buying a property is never straight forward and even seasoned property professionals will run into an unexpected hurdle at some point. For first-time buyers, especially in the current climate, the property buying process can be utterly baffling.
Figures covering England, Scotland and Wales show problems of getting on housing ladder
Some 56 per cent of under-35s who own a property had financial help.
Two thirds of them couldn't have bought their home without this support.
They received £19k on average, and absent it would have delayed buying for another four years.
First-time buyers taking out a mortgage have seen monthly repayments rise by up to £140 during the coronavirus crisis, after nervous lenders hiked rates to a five-year high.
Nearly half of first-time buyers say their home buying plans have been delayed. One in five says they had to pull out of buying a property due to lockdown. This comes as the property market booms for movers with bigger deposits.
A buyer of an average-priced UK home must put down minimum deposit of £33,000
Opt in here