Are we moving into a generation of property buyers in the UK?

st-johns-wood-property-to-rent

Homeownership levels in the UK are at their lowest point since the 1990s. Despite this, there is some evidence that people are starting to buy property again. With more new properties on the market and mortgage rates near record lows, it’s not surprising that first-time buyers might be picking up their pens. 

What does this mean for Generation Rent? Are we moving into a generation of property buyers in the UK?

Property values in the UK have continued to rise over the past few years, with house prices increasing by 7.2% last year. It is predicted that this trend will continue and it won’t be long before we see a generation of property buyers emerge who are either looking to buy their first home or move up the housing ladder.

What is “Generation buy”?

“Generation Buy” was introduced by the Prime Minister at this year’s Conservative Conference. Because so many young people have had trouble getting on the property ladder, the media has long since dubbed them “Generation Rent” — and the plan is to turn those renters into buyers. This would, in theory, happen with more mortgage offerings for 5% deposits and an increase in building new homes.  

“We need now to take forward one of the key proposals of our manifesto of 2019: giving young, first-time buyers the chance to take out a long-term, fixed-rate mortgage of up to 95 percent of the value of the home – vastly reducing the size of the deposit,” the Prime Minister explained. “We believe that this policy could create two million more owner-occupiers – the biggest expansion of homeownership since the 1980s.”

It is important for anyone looking at buying their first home or moving up the housing ladder to plan ahead, as they will need more time than ever before to save for a deposit on their desired property due to recent changes in mortgage lending rules (e.g., higher deposits). Homebuyers should also consider whether they would like help from an agent when they purchase their new home – agents can provide guidance around location and where added value can come from once their purchase has been made.

Laurence Leigh Residential is an independently owned estate agency, specialising in the sales, acquisitions and lettings of some of the most exclusive and desirable properties in and around St John’s Wood,  Maida Vale, Regent’s Park, Little Venice, Primrose Hill and Hampstead.

Collectively, we have over fifty years of experience in the profession and have built strong, long-lasting relationships, with both local and overseas clients and work closely with some of London’s leading property buying and relocation agents.

Ultimately, the hope for Britain to once again be filled with homeowners across all demographics is reliant on regulations and schemes coming to fruition that have been proposed by the government. This will give young people the opportunity to purchase property through deposit schemes and assisted mortgage rates, while also relying on homeowners with a portfolio of homes to be deterred from maintaining multiple property assets.

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