If you are looking for first time buyer homes in London, now is as good a time as any. Up until recently, it was becoming increasingly tough for first time buyers to get on the property ladder. An income of around £140,000 plus a 10% deposit was the norm. Not easy. Add to this the large number of property investors looking for buy-to-let properties in London, there were plenty of obstacles for first time buyers. But that threat has subsided. For now.
The last budget was a godsend for first time buyers. The Chancellor, George Osbourne, introduced an additional charge in an attempt to suppress the power of property investors in the buy-to-let market. This means that first time buyer homes in London can actually be bought by first time buyers. The government were concerned that investors buying affordable, starter-type homes were making it more difficult for first time buyers to get on the property ladder. A stamp duty charge on second homes was introduced and the number of buy-to-let homes being bought by investors dropped by half.
The average cost of first time buyer homes in London is £314,686 and, according to Your Move & Reed Rain, this fell by 7% following the new second home stamp duty charge. So with less competition, the average one and two bedroom apartment in London fell by £20,000. This was great news for anyone looking to get on the property ladder, with more opportunity for those looking for first time buyer homes in London.
So will the bubble burst? More than likely. Experts feel that buy-to-let investors will grow to accept the new stamp duty charges and return to the market towards the end of the year. So should young professionals and couples looking for first time buyer homes in London strike while the iron is hot? Absolutely!
For more information on our first time buyer homes in London, contact one of the Inspired Homes sales and marketing team here.