There is a growing trend in the property world that sees many first-time buyers waiting until after the stamp duty holiday to join the property ladder. The intention is to wait out the stamp duty holiday and then begin their home buying journey when they expect house prices to be lower.
A census taken by Yopa shows that 2,000 would-be first-time buyers are delaying their purchases as a result of the events of the last year. 70% had been furloughed, reducing their income by at least 20% while 16% had lost their jobs entirely. On top of that, over half of those surveyed reported a fall through in a property purchase. All of these factors have led many first-time buyers to wait until after the rush of buyers has settled down - post stamp duty holiday - before continuing their journeys.
The reason for the delay is due to an expectation that house prices will fall in the immediate wake of the stamp duty holiday ending. There is, however, a belief among industry experts that goes against this assumption: Mike Scott of Yopa predicts that house prices will remain high until at least the end of the year.
Scott believes that there are a number of factors that will contribute to prices remaining high:
As a direct result of holiday plans being scrapped, commuting no longer being a requirement and restaurants not being open, Briton’s have saved upwards of £170 billion since the first lockdown was implemented last year. While the pandemic has had a negative financial impact on many, others have been able to capitalise, either knowingly or by accident, as a result of limiting their lifestyles and expensive activities.
Outside of the economic factors, it will be very easy to imagine a vast number of people looking to draw a line under what was a difficult year to say the least. Opting for a fresh start and closing the chapter on their present living situation will be sure to keep demand and prices high.
According to Zoopla, first-time buyers are now more vital than ever. They have long been a driving force in the property industry, but they were responsible for 33% of all home sales in 2019. But the reason why their hesitation in joining the property market could prove problematic, is due to their practicality, being a guaranteed chain free buyer and offering a greater sense of stability.
We have written before on the frequency of chain breaks and how to recover from them, but they are - sadly - always going to be a possibility. The risk of a buyer pulling out, though, is greatly reduced with first-time buyers as they do not bring a chain with them. Without first-time buyers, though, chain breaks will become all too common for everyone on the chain, whether you are moving for the second, third or even last time.
If you experience a chain break and need to fix the problem quickly, contact Spring today. We buy any house and have over a decade of experience and can help you through your home buying journey and repair your broken property chain, meaning you do not have to compromise and miss out on your dream home thanks to our sell house fast service.
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