City AM have revealed survey results that indicate buyers feel better placed to buy a home than they did a year ago.
Improving buyer sentiment: Who feels better placed to buy a home than a year ago?
18-34 year olds: 42%
35-49 year olds: 23%
50-59 year olds: 24%
60-69 year olds: 21%
It is encouraging to see that 42% of 18-34 year olds feel more confident about buying a property than they did a year ago as there are likely to be a large number of first time buyers that fall within this age category.
Steps have been taken to try and support more first time buyers purchase their first home, including reducing stamp duty costs for purchasers by creating a new system whereby stamp duty is no longer payable within thresholds, but by a graduated system meaning purchasers only pay the amount of stamp duty that falls within each threshold.
Research from move with us also revealed that 23% of agents noticed the changes have encouraged more new listings since the stamp duty thresholds changed and 25% of agents have observed demand from buyers has increased, which is great news for sellers.
The Help to Buy scheme has also been successful in creating the opportunity for purchasers to buy a property with just a 5% deposit. This has been very helpful for buyers locally as raising a deposit has been one of the major hurdles preventing them from getting onto the property ladder.
More recently the Help to Buy Isa has also been introduced to help first time buyers save a deposit. With the new Help to Buy Isa the government will add 25% to the monthly contribution made by prospective purchasers, up to a maximum government contribution of £50 a month.
An increase in first time buyers will also be positive news for current home owners because an increase in sales to first time buyers will free up second time buyers to purchaser another home, allowing them to move up the property ladder.