Outlook brighter for London’s first-time buyers
A ‘window of opportunity’ has opened up to first-time buyers as buy-to-let investor activity cools.
Those looking to buy their first home in 2017 will have more properties to choose from and greater negotiating power compared with first-time buyers a year ago.
In the months leading up to April 2016, buy-to-let activity surged ahead of the introduction of an extra 3% stamp duty surcharge on second homes.
Over the last few years, first-time buyers have generally been in competition with buy-to-let investors for the same property, but now the market appears to be turning.
With fewer buy-to-let investors buying property, there is more choice for first-time buyers. First-time buyers also have more freedom to negotiate a lower asking price on a property they are interested in.
In recent years, affordability has been the main issue for would-be first-time buyers in London. High buyer demand and lack of available housing stock has priced many out of the market.
At a time when borrowing costs are low and mortgage lending criteria more flexible, first-time buyers should strike while the iron is hot.
Despite the ongoing uncertainty surrounding Brexit, and Prime Minister Theresa May’s recent announcement that the UK will be leaving the single market, buyers appear confident to continue to invest in residential property.
For more on this story, click on the link below: