THE FIRST TIME BUYER MARKET HAS BEEN INFLUENCED BY 5 KEY FACTORS Government Initiatives: The Help to Buy Equity Loan scheme was and remains perhaps the most successful initiative, and there are many commentators and practitioners who would like to see it re-instated. Other initiatives introduced just haven’t got going in comparison, despite Government backing in areas such as Shared Ownership, First Homes initiative plus the various savings schemes available for deposits such as the LISA. Interest Rates: We all know that the last 10 years of low interest rates made borrowing more affordable for FTBs, however, the last two years has seen the end of such pricing for the foreseeable future, putting further strain on this area. Lending Criteria: Lenders have tightened their lending criteria in response to the economic uncertainties that we now live in, making it more challenging for FTBs to qualify for a mortgage, particularly if they have limited deposits or less stable income. Affordability Challenges: Perhaps along with the deposit required, this area dominates the FTBs ability to transact. High property prices in all areas of the UK, but particularly in London and the South East, pose significant challenges for FTBs. Housing Supply: Limited housing supply, especially of affordable properties, continues to be a challenge for FTBs. The imbalance between supply and demand can drive up prices and make it harder for buyers to find suitable homes within their budget. 04
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