It’s been evident over the past 12 to 18 months that first-time buyers have found it increasingly tough from an affordability perspective during such turbulent economic times and amidst rising cost of living pressures. While this may have been a disheartening period for many, the major positive to take from this is that demand remains strong amongst this vital band of borrowers.
Although, it’s also fair to say that all parties involved in the homebuying process continue to require additional assistance when it comes to opening more doors for first-time buyers and in helping to bridge a cavernous supply gap which continues to widen.
On this very subject, a poll in our Game Changer webinar series which took place at the beginning of February revealed that over a third of property professionals were looking towards the reintroduction of Help To Buy or some government-led initiative announcement in the then upcoming Budget to help boost the new build sector and first-time buyer marketplace.
Breaking down the responses to the question – what do you most want to see from the Chancellor in March’s Budget, 35% of respondents replied with Help To Buy or something to support new build and first-time buyers. 22% sought a stamp duty holiday/reduction, 17% opted for an inheritance tax cut, 16% chose stamp duty changes for downsizers and 10% elected for additional landlord support.
We are now on the other side of this important political landmark and while expectations were not exactly unbridled, the phrase ‘missed opportunity’ has emerged as the most common reaction amongst many industry commentators and left these respondents a little deflated.
Thankfully, the housing and mortgage markets are proving to be highly resilient entities and we should certainly take great comfort and confidence from this fact moving forward.
When evaluating the 2024 UK property market, 41% of the webinar respondents suggested that there was cause for optimism, with the same proportion saying that there is ‘possibly’ cause for optimism. 13% stated that they were ‘unsure’ about the marketplace with 5% saying that there was ‘probably not’ any cause for optimism. However, on a brighter note, not one property professional in the audience suggested a definite ‘no’ cause for optimism for the UK property market over the next 12 months.
The 2024 property market will undoubtedly see a rise in the value attached to expertise throughout the industry. Leading professionals in their fields such as estate agents, surveyors, conveyancers and mortgage intermediaries will play an even more integral role in ensuring that the ongoing needs of FTBs, second steppers, downsizers, landlords and investors are being successfully met, with the highest service standards being duly rewarded.
And let’s hope this vast knowledge base is utilised to improve a somewhat cumbersome homebuying journey and deliver a Spring bounce which can help further propel this optimism to new levels and build on what has been a solid start to the year from an enquiry and transactional standpoint.
Matthew Cumber is managing director of Countrywide Surveying Services