COVID-19: UK First Time Buyers are delaying their moving plans

According to recent research, around 50 per cent of the UK’s First Time Buyers (FTBs) are altering or delaying their moving plans, due to the lack of or worries surrounding income stability, mortgage availability and the Government’s restrictions.

One in six experienced a property sale fall through due to coronavirus, and one in five had to pull out due to the instructed lockdown.

Many participants in the research stated that the moving process had become more difficult during the pandemic, while those who missed out believe the coronavirus pandemic has made it more difficult to get on the property ladder.

On the other hand, the Government’s Stamp Duty Holiday, for England and Northern Ireland, has meant that around one-third of FTBs thought it was an ‘immense help’ in getting them a step closer to buying their first home.

Head of Mortgage Distribution at Aldermore Bank, Jon Cooper, stated that “stamp duty relief also appears to have received a positive response from first-time buyers, with many seeing it as a welcome boost. The initial costs of getting on the ladder can be a real barrier to many, so anything that helps reduce that entry fee for some is welcome for the housing market.”

The Bank of England confirmed that the number of mortgage approvals for home buyers shot up to the most it has been, since August 2007. 

Wesley Ranger, Managing Director at Willow Private Finance, said: “Banks are also increasing the cost of borrowing for higher loan to value mortgages, which is discouraging first-time buyers and those with smaller deposits from buying properties.”

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