“Buying the first home is still very difficult” – Aldermore research

First-Time Home Buyer

Recent studies on home buying in Britain show that buying is still very difficult. Despite the changes in law made by the government to support home buying, raising a deposit or getting a mortgage is the biggest issue. Aldermore reports state nearly 50 per cent of first-time home buyers were refused a mortgage when they first applied through their core bank.

Recovery in UK Property Market

Related statistics show surveyors are reporting more sellers listing their properties in May 2018. It indicates buyers are struggling to get the property of their choice. Also, the latest survey - 'The British Social Attitudes survey by the Ministry of Housing, claims UK residents support new affordable house building in their areas. 

UK property market is tentatively showing signs of recovery; the data represented by RICS suggested this. However, the institution informed how the sentiment in housing was more or less flat. The figure shows a marginal decline in house prices in April and not much change otherwise.

After almost three years of price growth in the South-East, the growth has halted, and the market is offsetting. At the same time, the prices are growing in the North-West, the Midlands, and Wales. As a result, there has been an increase in new buyer inquiries in the previous month.

Issues In Buying the First Home

Home buying can be long and complex, typically involving research, borrowing, mortgage, and paperwork. Such transactions involve the cost of the transaction, legal documents, mortgage, solicitor bill, Land Registry, stamp duty, and removal bill.   

The reports by Aldermore suggest home buying is 89 per cent more difficult for the first-time buyer, although the rate is slightly low compared to August 2017, when it was 93 per cent. Also, mortgage affordability dropped from 12 per cent to 5 per cent for first-time buyers.

Mortgage

• The mortgage valuation is done to assess the property's cost and determine the major works needed and how they affect the property price.  

• The buyer has to pay for a mortgage, although some sellers provide a free valuation.

• Mortgage valuations by some evaluators can be expensive and even different from others for the same property.

• Lenders can charge differently for mortgage valuation.

Surveys

Buyers are advised to get a property survey where qualified RICS surveyors can give professional indemnity insurance. RICS condition report provides an introductory survey about the home, while detailed surveys are provided in the RICS homebuyer report.

Surveys can foretell risks in buying. Different types of survey reports are available such as the Condition report, where the survey provides the basic information related to the mortgage valuation and risk summary.

Other types of surveys are the Home conditions survey and Building Surveys. Home building or structural surveys can get a detailed assessment. A building survey is recommended for old houses or buildings without proper paperwork.  

Surveys help negotiate property prices, depending on the repair work needed after buying. The first-time buyer can get more information about home buying in the UK at Hamilton International Estates.