First-time consumers are paying almost eight per cent over the asking value to safe their first house, based on new information from property brokers Yopa who in contrast common asking costs to common offered costs for first-time purchaser properties.
The common asking value for a first-time purchaser house within the UK is £227,570, based on Rightmove, whereas the UK Home Worth Index exhibits the typical value {that a} first-time purchaser house truly sells for is £245,208 — 7.8 per cent greater on common than the unique asking value.
That is although first-time consumers current a terrific prospect for distributors as they don’t have anything to promote and there’s no probability of a collapsing chain scuppering the sale. The figures recommend there’s a shortage of first-time purchaser properties in comparison with the remainder of the market — and loads of competitors.
“These findings spotlight the challenges first-time consumers are going through in at the moment’s extremely aggressive housing market. On common, consumers are paying a further £17,638 to safe their first house, which displays the robust demand for extra reasonably priced houses and the stress inexperienced consumers could really feel to supply extra,” explains Jonathan Bone, Head of Mortgages at Higher.co.uk.
“This emphasises the essential significance of monetary preparation and strategic planning for these seeking to get on the true property ladder.”
The place London first-time consumers are transferring to
In London, a first-time purchaser pays greater than double that of the nationwide common; the information discovered {that a} starter house within the capital is available in at a median of £506,706.
By way of the place London first-time consumers are buying in 2024, Higher.co.uk had 85 first-time purchaser mortgage purposes for Tower Hamlets and Hackney, with a median deposit of £70,500 and a median worth of 435,000; 77 purposes for Westminster, Kensington and Chelsea, with a median deposit of £95,750 and a median property worth of £500,000; and 71 purposes from first-time consumers in Southwark the place the median deposit was £72,643 and the median property worth £401,000.
The least in style areas of the capital for first-time consumers included Haringey, Newham and Barking.
Tips on how to get a suggestion accepted with out overpaying
1. Organise an Settlement In Precept
An settlement in precept is a doc from a mortgage lender confirming how a lot they’ll lend you, based mostly on monetary concerns reminiscent of your wage and deposit.
“It might strengthen your place as a first-time purchaser as a result of sellers usually tend to take your provide severely in case you have this conditional approval in place… An AIP helps offer you a aggressive edge, particularly in a difficult property market the place sellers could obtain a number of presents,” says Bone.
Being a first-time purchaser comes with the massive benefit that you just aren’t in a series. Because of this you usually tend to be versatile on trade and completion dates.
If a vendor needs to promote rapidly or hasn’t had an opportunity to seek out their subsequent property, this flexibility is one thing they are going to admire and will provide the edge over different presents who’re in chains and constrained by timings out of their management.
3. Begin together with your finest provide
First-time consumers typically assume that they should put in a number of presents earlier than securing a property, however you would possibly find yourself paying extra in the long term – and even shedding out.
“Take into account making your finest and highest provide first, if you wish to keep away from a prolonged negotiation course of and cut back the danger of one other purchaser pipping you to the put up. That is one other efficient manner of exhibiting the vendor you’re severe and financially ready, which can assist make your provide stand out. It additionally prevents the necessity for back-and-forth negotiations, which may generally result in shedding the property to a different purchaser,” says Bone.
4. Write a personalised cowl letter
Whereas shopping for a home can really feel very transactional, a private contact does assist. Alongside together with your provide, think about writing a letter about who you’re and what you want in regards to the property.
“Sending a personalised cowl letter can assist set you other than different consumers. Whereas the choice in the end relies on the vendor, it’s vital to keep in mind that placing a property up on the market is a big occasion for folks, because it might need a number of sentiment and recollections hooked up to it,” says Bone.
