Is Petersfield Good For First Time Buyers?

At Williams of Petersfield, we stay in touch with the local housing market (and national market), helping people make their next move. If you are looking for guidance or assistance on any property matter, get in touch, and we will be glad to help.

This is a boom time for first-time buyers, and it is natural for people to question if Petersfield is good for first-time buyers.

How is the market looking for first-time buyers?

According to the Yorkshire Building Society (YBS), there were more than 400,000 first-time buyers in 2021. This is the first time this figure has been breached since the Great Financial Crisis. It is estimated there were 408,379 first-time buyer instructions in 2021. This represents a 35% increase on the 2020 figures, which stood at 303,000.

First-time buyers make up 50% of all property purchases with a mortgage. Back in 2007, these buyers only represented 36% in the overall mortgage market.

The last notable peak with respect to first-time buyers was 2002, and this year saw 531,800 people make their way on to the property ladder. In 2006, there were 400,900 first-time buyers in the market.

After the financial crisis, first-time buyer numbers were around 200,000 (between 2008 and 2012), so the current numbers are around double what they were during that challenging time.

Is Petersfield suitable for first-time buyers?

While the average price of property in Petersfield is higher than what many first-time buyers are looking to pay, it should be remembered that many different sorts of people, from various backgrounds, are classed as first-time buyers.

With Rightmove saying properties in Petersfield had an overall average price of £509,886 over the last year, as of the end of January 2022, this is a higher price than many people would look to pay. However, first-time buyers with support from family members or who have been a success in business or life, might find this area to be perfect when stepping onto the property ladder.

Also, in our dealings in the local area, we have worked with many first-time buyers, so we know there is demand from this group.

This is a good thing, even if you aren’t a first-time buyer yourself. Having new buyers enter the market ensures the cycle keeps moving, and if you’re a homeowner looking to sell your home, it might be that a first-time buyer is your ideal buyer.

What are key factors in the current level of demand for homes?

When it comes to understanding why there is a greater level of demand for property right now, the following factors are all prevalent:

  • Unemployment figures which are falling
  • Borrowing is affordable for many people
  • There is a strong range of affordable mortgage deals with low deposits

What is the average cost of a home for a first-time buyer?

The most recent figures, for October 2021, state the average price of a first-time buyer’s home is £222,997. This represents a 9% increase in the figure from October 2020.

Contact Williams of Petersfield for all your 2022 housing market needs

At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.

Interesting Times For First-Time Buyers

With the stamp duty holiday tailing off, there is a strong chance first-time buyers will come back to the market in larger numbers. At Williams of Petersfield, we have seen a drop-off in activity from first-time buyers, but we believe this is set to change soon.

This has been a challenging time for many buyers

Yopa commissioned Censuswide to speak to 2,000 people, all planning on buying their first house in the next year. The study found:

  • 70% of respondents have been furloughed at some point in the past year
  • One in six respondents have lost their job because of the pandemic
  • More than 50% of respondents have experienced a collapse of a property deal in the past year

Mike Scott, Chief Analyst at Yopa, says: “Delays in moving due to the recent situation are obviously going to exist. But the extent of the delay reported by potential first-time buyers suggests that there is still pent-up demand waiting for the restrictions to be eased further, for furloughs and job uncertainty to end, and for people to return to full-time work for full-time salaries.”

Other findings in the study include:

  • One in three homebuyers are happy to wait until the stamp duty holiday ends to be active in the market
  • 22% of respondents said the stamp duty holiday hasn’t impacted their plans

Mike Scott also said; “At Yopa we do not expect an immediate national fall in prices once the stamp duty holiday ends. We believe that the lifting of Covid-19 restrictions – combined with people’s reassessed post-pandemic housing needs, the ‘accidental savings’ that many have made over the past year and the desire for a post-pandemic fresh start – will keep house prices high for at least for the rest of this year. There may well be price decreases in some market sectors, such as inner-city flats, but these will be more than outweighed by price rises for property types that are in high demand for the post-pandemic lifestyle.”

Are you looking to move soon?

Some of the leading concerns cited by respondents include:

  • The size of deposit required to buy a home
  • A lack of suitable and affordable mortgage products
  • Additional criteria restrictions placed on attractive mortgages
  • One in five buyers plan on using the new Government backed mortgage guarantee scheme
  • 85% of first-time buyers plan on using some form of Government assistance to buy a home
  • 13% of respondents said commuter links are less important now than they were before the pandemic
  • 75% of respondents listed outside space and fast broadband as being of the utmost importance

Neil Weston, Principal of Scout Financial Services, Yopa’s mortgage broker partner, says: “In general, we expect prices will rise further rather than falling in the second half of this year after the main stamp duty holiday ends. Those first time buyers who are hoping for prices to fall after the holiday ends are likely to be disappointed and may end up paying even more.”

Neil concluded by saying; “80% of the first-time buyers Yopa surveyed said that they were priced out of the initial area they were hoping to buy in; alarmingly, even 77% of those with household incomes exceeding £75,000 said the same. If first-time buyers are still hoping to get on the property ladder in 2021, they should really be getting their ducks in a row now to avoid being further priced out later in the year.”

At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.

Will Help Turn Tenants Into Buyers?

The stamp duty holiday scheme has been of significant help to many people in the housing market, but not first-time buyers. Many FTBs have felt overlooked in the property market, but at their recent party conference, the Conservative Party have claimed they will usher in new assistance for first-time buyers.

Boris Johnson announced plans for a new scheme to help people arrange long-term fixed rate mortgages for up to 95% of their home’s value.

What help might be on offer?

Zoopla have classed the key points from the Prime Minister’s speech at the Conservative Party Conference as:

  • The Prime Minister has promised to increase the availability of mortgages for buyers with small deposits
  • The government believes it will enable an additional two million people to buy a property
  • Johnson said it would represent the biggest expansion of homeownership since the 1980s

Mark Hayward, Chief Executive of NAEA Propertymark, comments: “We welcome the Prime Minister’s comments today which shows a positive change in tone by promoting a generation of renters to become a generation of buyers. We encourage lenders to come on board and support this initiative to enable first time buyers to enter the property market by future proofing the financial burden many face. We want to see intent become action quickly so that first time buyers can make the most of the current stamp duty holiday and continue to stimulate the housing market.”

Industry experts have their say

Craig McKinlay, New Business Director at Kensington Mortgages, comments: “The ‘Generation Buy’ scheme will be, in effect, a replacement for Help to Buy. Only a few lenders are dipping in and out of the high LTV market at present with ‘flash sales’ due to sheer demand – so this should reassure some lenders to enter more permanently and support first-time buyers.”

Craig also said; “However, for others, the scheme could lead to further capacity issues for those being selective with their offering to manage demand. On the whole though, like the introduction of Help to Buy in 2013 helped boost confidence and ease lenders back into the small deposit market, we hope this scheme will do the same.”

James Forrester, Managing Director of Barrows and Forrester, comments: “Today’s (6th October) announcement will no doubt excite a nation of aspirational homebuyers who have already been sent into a frenzy over the prospect of paying no stamp duty. However, for Boris Johnson to claim this will help fix our broken housing market is not only laughable but quite frankly an insult to those who find themselves priced out of homeownership. The cause of the dire situation we find ourselves in is the Government’s sustained failure to build enough affordable housing year in, year out.”

James also said; “The inadequate supply of housing to meet demand is one of the driving factors that has caused house prices to spiral and to continue to mask this failure by further fuelling demand is irresponsible. Instead, their time would be better spent reallocating wrongly classified green belt land so it can be utilised for housing and preventing the big housebuilders from drip-feeding housing supply in order to keep their profits up.”

At Williams of Petersfield, we aim to support the Petersfield community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.


First Time Buyers Market Share Rose In June

Whether you are a buyer or seller, you will have an interest in how first-time buyers are faring. If you are a first-time buyer, you hope to see favourable market conditions. If you are another type of buyer, improvements for first-time buyers could lead you to facing increased competition in the marketplace. If you are selling your home, you want to see more buyers in the market and the increased presence of first-time buyers may be of benefit to you.

No matter what you are looking to achieve in the property market, Williams of Petersfield is here to assist you.

Many are happy to see an increase in first-time buyers in the market

Information contained with the e.surv Mortgage Monitor suggests that for June of 2018, first-time buyers accounted for 23.4% of the market, which is an increase on the 22.4% of the market in May of this year. While this isn’t a significant increase and it is best to be wary about jumping to conclusions on monthly changes, anything which suggests that the number of first-time buyers is increasing will be positive for many people.

It is natural that first-time buyers will be pleased by this increase but if you are looking to sell your home, an increase in first-time buyers is likely to be positive news. Anything which suggests that there are willing buyers in the market and more people are stepping on to the property ladder should be a positive move forward for the market.

Changes in the mortgage market impact on many people

There was also an increase in the volume of larger deposit borrowers, which represents those with mortgages which account for up to 60% of the loan-to-value, and this moved from 32.8% to 32.9% over the month. The mid-market, which represents those putting down up to 25%, fell from 44.8% to 43.7% over the course of May to June.

UK first time buyers

In total, there were 66,345 mortgages approved for June and there have been many lenders across the country offering low rates for lenders. Not everyone is pleased with this and on social media you will find many people criticising lenders for offering mortgage deals which were last seen before the financial crash. However, if you are looking for a mortgage and have struggled to find the solution that is right for your needs, it is likely that you will be pleased to see that there are more options. Also, if you are selling your home, you will be pleased to learn that there are more options for buyers in obtaining a mortgage and this will hopefully improve circumstances for people selling their property in the UK.

At Williams of Petersfield, we know how challenging the property market is, no matter what you are looking to achieve. If you need support or guidance with your next move, contact Williams of Petersfield and we will be happy to help. Whether you are selling your home, or you want to step on or move on to the property ladder, we are here to help.