With the sales market getting back to its normal buzz across London after a cold and seemingly never-ending winter, DAA Residential has seen the average prices of properties as well as the number of potential buyers increase. At the same time, the market has been hostile towards the average first time buyer looking to get a foot onto the bottom rung of the property ladder.
With banks requiring larger deposits and the qualifying criteria for borrowers getting increasingly onerous, the average age for first time buyers has been on a steady increase with the majority of 25 to 34 year old Londoners still stuck in rented accommodation with home ownership often a distant dream.
However, following the recent budget there is at last a glimmer of hope for first time buyers keen to get onto the property ladder, but who are struggling to pull together the required deposit. HM Treasury has announced a further £5.4bn in financial support for first time buyer’s through the so-called ‘Help to Buy’ initiative and its associated schemes.
The first scheme offers first time buyers the opportunity to buy an approved new build property from the 1st of April 2013 with a government-backed equity loan of 20% and a small own deposit of 5%.
The second scheme however is one that DAA Residential is the most excited about whereby first time buyers will have the opportunity to buy any apartment up to the value of £600,000 also with a similar, small 5% deposit but with the government providing guarantees direct to the actual lenders like banks and building societies. This scheme will only be available from January 2014 but it will enable this generation of renters, especially in London where properties remain expensive, the chance, at last, to take that first step on the hitherto elusive property ladder.