07 Jul July Home Buyers report reveals biggest barriers to getting on the property ladder
Today, Money.co.uk has released the new Home Buyers report, which details the latest property trends across the UK. As well as average asking prices in each region, the report also reveals the top barriers to purchase for individual regions.
According to the data, potential homeowners in multiple areas are struggling to find anything relevant in their price range. Luckily, several buying schemes exist that can help to increase your budget – you just need to determine which one is for you.
Nisha Vaidya, mortgage expert at money.co.uk said: “There are some regions of the UK where it’s proving almost impossible to get the house you want.
“In Norwich for example, almost half of potential buyers saw either few or no properties in their budget. Other areas of the UK are just as bad, with Southampton, Cardiff, Brighton, and Leeds following close behind.
“For a lot of people, getting a foot on the property ladder can seem incredibly daunting. In Edinburgh, over a third of people said that deposits were the single biggest barrier to buying, whereas in Southampton, earnings were seen as the biggest issue.
“Before you calculate your property budget and decide that a particular area is too expensive for you, it’s important to look at the different types of buying schemes that are available. There may be a way to get help with your deposit or even increase your borrowing capacity, both of which will completely change your options.
“For example, if you’re on a smaller salary and are struggling to borrow enough for a place on your own, it might be worth trying a shared ownership scheme. The way this works is that you take out a mortgage on part of the value of a property, say 50% for example, and pay rent on the rest.
“The result is that you can live in a house or flat you wouldn’t be able to afford on a regular mortgage due to limited borrowing capacity. Some schemes even give you the option to purchase more equity in the property at a later date, sometimes up to 80% of the value of the property.
“Alternatively, if you’re looking specifically at new build homes, you may be eligible for the government’s help to buy scheme. Through this scheme, the government will give you an equity loan which is interest free for 5 years, enabling you to potentially buy a property with as little as a 5% deposit.
“Remember, this only applies to new builds, and you must be an owner-occupier, meaning you can’t rent out the property once you’ve completed on your mortgage.
“Whether you’re looking to buy the traditional way, or through a buying scheme, be sure to check out the average house prices in each region first in case there’s a better value area just around the corner.
