Unexpected challenges for first time buyers

Chris Lilley, regional managing director at Morris Homes, explains how to overcome the hurdles of moving into home ownership.

It has been widely documented that first-time buyers are currently struggling to make their initial move into home ownership, with frequent discussion around the challenge househunters face to raise a significant deposit.

What a lot of people don’t consider however, is what kind of house that they are going to make their first home. After months and sometimes years of saving, and longing over leather sofas and televisions, many first-time buyers often discover that finding a quality, available apartment or an ideal two or three-bedroom home throws up an unexpected hurdle.

A recent survey revealed that nearly a third of first-time buyers are struggling to find a suitable first home, something that comes as a surprise to many people. The stagnant ‘second-steppers’ market has put the brakes on moves up the property ladder, curbing the supply of suitable first properties.

This is where housebuilders like Morris Homes can step in, combining affordability and suitability, with the construction of quality new build homes at developments such as its Darcy Park and Newstead Grange sites in Nottinghamshire. These properties don’t require the same renovations as a second hand home, and are built to stricter energy efficiency standards than many houses available, resulting in much lower energy bills and making a new property an ideal choice for first-time buyers.

The common denominator in the struggle to take that exciting first step onto the property ladder for many first-time buyers remains the size of the deposit that is needed.

Juggling daily expenses such as rent costs, which have increased to a record £744 per month on average, whilst also saving for a deposit is often a lengthy process. Recent figures show that the biggest concern for 36 per cent of first-time buyers is that the time it will take to raise the necessary deposit could significantly delay their moving plans.

Increasingly first-time buyers are looking for a simple, affordable way into home ownership, that won’t involve years of saving and living with parents or in rented accommodation.

Many househunters are turning to schemes such as the Government-led NewBuy initiative, which is offered at developments such as Morris’ Darcy Park and Newstead Grange sites. Available on new build homes worth up to £500,000, the scheme allows potential homebuyers to apply for a 95 per cent mortgage, providing an easier route onto that first rung using just a five per cent deposit. This makes it much easier for first-time buyers to overcome two of the biggest obstacles they face.

Another helpful initiative is the Government-led FirstBuy scheme. Buyers can purchase a property for 80 per cent of its market value when using FirstBuy, which again reduces the size of the deposit that needs to be raised. It also lowers the owners mortgage repayments, offering an affordable, hassle free route onto the property ladder for first-time buyers.

Whilst the overall market may not currently favour potential new buyers, housebuilders such as Morris are committed to providing quality one, two and three-bedroom homes that are available using exclusive, deposit-lowering schemes, which leave first-time buyers to worry more about what colour curtains to buy or whether they need a double or king sized bed.