As part of our First Time Buyer Focus Week, we’ve brought together expert insight from across the industry, exploring the key issues shaping the first-time buyer journey, from government support and affordability to negotiation strategies and changing market conditions.
Government support and reducing upfront barriers for first-time buyers
Jon Cooper, director of mortgages at Aldermore, highlights the importance of targeted government support to help first-time buyers overcome deposit and affordability challenges, beyond increasing housing supply alone:
“It’s clear from our research that FTBs want practical, tangible support that addresses the real barriers they face. Labour’s pledge to build 1.5 million homes is a positive and bold step, one that Aldermore is fully behind. But increasing supply alone won’t close the gap for those struggling with deposits, affordability assessments or the rising cost of living.
In the Chancellor’s Autumn Budget, we would have welcomed an 18-month Stamp Duty holiday for buyers of new homes under £500,000 – a measure that could stimulate sales and support first-time buyers – as well as the reinstatement of Help to Buy, offering a Government-backed 20% equity contribution for those able to put down 5%.
More encouraging is the FCA’s recent announcement on proposed UK mortgage rule changes, which should help more FTBs and the self-employed to get a step up onto the housing ladder. A creative, flexible approach, from innovative mortgage products to recognising rental payment history, or revisiting proven schemes like Help to Buy, will be crucial in helping more people take their first step onto the property ladder.”
Negotiation, budgeting and navigating the buying process
Craig Calder, Director of Secured Lending at TSB, discusses how negotiation remains a powerful tool for first-time buyers, alongside the need for effective budgeting and allowing enough time in the home-buying process.
“Most first-time buyers are successfully lowering a property’s purchase price through negotiations that can lead to notable reductions to the asking price, in some cases.
It’s vital that house buyers build time into the process for enough viewings, alongside effective budgeting and negotiation. The right deal for the right home can be game-changing for your financial future and well-being.
Market stability, mortgage rates and long-term affordability
Nathan Emerson, CEO of Propertymark, explains why improving mortgage rates and more stable house price growth are welcome signs for first-time buyers, but stresses that deeper affordability and supply issues still need to be addressed.
“Lower mortgage rates are a positive step and will undoubtedly help many first-time buyers reassess their options. Combined with modest house price growth, this shows the market is finding a more sustainable footing.
However, affordability pressures remain complex, and property tax thresholds have failed to keep pace with rising house prices and wage growth over the past decade, increasing the tax burden on buyers.
Propertymark believes reform is needed to create a fairer, more responsive property taxation systems across the UK that reduce upfront costs, support first-time buyers, and improve market mobility. Alongside this, action to boost housing supply and targeted support for those struggling to save for a deposit will be essential if homeownership is to become a realistic option for more people.”
