What first time buyers are worried about in 2024
In 2023, there were over 20,000 more first time buyers in the UK compared to the amount in 2022. The drive behind this increase of first time buyers is variable, and it’s a very interesting trend to note.
With more support for new property owners coming out of the government, and more and more people taking charge of their personal finances in the modern era, has the real estate market become more accessible than we’ve previously known it?
Buying a house is still one of the hardest financial moves to achieve, and many first time buyers have overwhelming worries about their future. The three below are the most common in the current first time market.
Paying too high a price
With property values set to grow over the next twelve months and beyond, the housing market is currently in a good state for those looking to sell. For first time buyers, on the other hand, there’s a serious concern over whether or not you’re able to pay a fair price.
Many first time buyers have a smaller budget than those looking to buy a new house or your average landlord with a mortgage. With this knowledge in mind, it’s hard to assess the asking price accordingly, especially with such competition in the market at this current time.
Understanding property taxes
Property taxes have long been a sore spot for first time buyers in the UK real estate market. You’ll never pay out one lump sum in order to cover the government’s allowance, but instead have to chase up and ensure you’re complying with various different taxes that fall under property law.
Thankfully, there’s a helpful guide out there for those confused by stamp duty and the like. However, with so many first time buyers putting off a sale because their budget doesn’t stretch to cover the tax portion, it’s clear that the barriers in front of buying your first home are still daunting.
Losing a house at the last minute
With the way the housing market moves in the UK, it’s easy to be undercut at the last minute. Known as ‘gazumping’, many sellers are well within their rights to accept your offer and then accept a higher offer at the last minute, if one comes their way. While it can lose the buyer a lot of money during a crucial period in life, this act is legal.
For first time buyers, this possibility is one of the worst outcomes of all. For those looking to get their foot on the property ladder and secure either a starter or their dream home, the idea that they could be minutes away from signing a contract and suddenly lose is disastrous.
If the contracts have been signed, however, a ‘notice to complete’ can be sent to ensure the seller operates legally.
First time buyers make up a good portion of the current market. However, in 2024, the reasons behind home anxiety are still as rife as ever.
