According to recent reports from Zoopla, buyers across the UK are choosing to purchase three and four bedroom homes rather than one and two bedroom flats.
Two thirds of people buying their first home now look for houses showing that they are no longer compromising on the size of their first property. This demonstrates that buyers are taking a long term view of their property purchase, choosing a home with a longer time horizon when previously those buying a home would choose smaller and less expensive starter flats.
Research also shows that first time buyers are the largest purchasing group in the property market this year and in 2018 they accounted for 36% of all sales.
One of the reasons that people are choosing houses as their first home is the high costs involved when they upsize, including mortgage arrangement fees, solicitor fees, stamp duty and estate agent fees.
In addition, people today are older when they buy their first home due to the time it takes to save a deposit and don’t appear to be rushing into buying smaller, lower value homes in order to get onto the property ladder.
Data from Zoopla shows that the gap between the average first time buyer’s property and all other properties is narrowing and has done for the last twenty years.
Last year, first time buyers bought homes that were between 8% and 15% cheaper than the average property price in their location. In 2007 this figure was between 20% and 25%.
This indicates that buyers can afford more expensive homes due to the availability of longer and more affordable mortgage terms; with the typical first time buyer opting for a 29 year mortgage term compared to an average term of 25 years ten years ago.
The biggest barrier to buying a first home is the deposit required and at present are putting down 23% of the purchase price. Before the financial crisis, due to the lack of affordability checks and self-certified mortgages the average was only 9%.
It’s worth noting that although throughout the UK people are favouring houses, here in Glasgow tenement flats are still appealing to buyers from all walks of life due to the size and their proximity to the excellent schools and amenities especially in the West End. If you are looking for a property, make sure you register for our property alerts.
Vanilla Square – highly personal sales! At Vanilla Square you will always be liaising with one of our business partners, which makes our service that much more responsible and approachable. When you instruct us, your property will reach a wider audience as we are one of the few agents who are present on all the major property portals to offer sellers maximum exposure. If you’re looking to buy or sell your property, or you’re simply considering the idea, contact us by calling 0141 229 0210 or pop into our new office at 711 Great Western Road. One of our partners will be delighted to help and provide you with impartial, expert advice.