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Development Finance

Development Finance: What Documentation Do I Need to Apply?

Each development finance product is unique – a bespoke agreement reached between the issuer and the borrower. There are various different types of development finance that can be issued, each targeting different kinds of developments and fulfilling developers’ individual requirements.

But what remains consistent with all types of development finance is the importance of submitting the appropriate paperwork. The documentation you provide to support your application will play a major role in determining your eligibility for funding.

It is therefore essential to ensure you have the right documentation in place ahead of time, reducing the risk of delays and disruptions.

What Paperwork Do I Need?

The extent of the paperwork required as part of your application for funding will be determined by the nature and extent of your requirements. 

However, the overwhelming majority of lenders will expect to be presented with formal evidence of the following as standard:

  • The value of the property at the time of your application
  • The estimated final value of the completed development
  • An overview of all construction and renovation costs
  • A complete dissection of the project’s schedule and deadlines
  • Extensive evidence of your experience and track record
  • Examples of successfully completed similar projects
  • Full disclosure of all providers involved in this project
  • Confirmation of receipt of planning permission and permits
  • Acknowledgement of any restrictions that may apply

In addition to the above, you will also need to provide your lender with evidence of a workable exit strategy. Your job is essentially to convince your lender that you are a safe candidate for development finance, by showing them exactly when and how you will repay the facility.

This could be in the form of a lump-sum payment following the sale of the completed development, or by transitioning your development finance loan onto a longer-term repayment product.

Do I Need a Broker?

While broker support is not mandatory when applying for development finance, it can be beneficial in a variety of ways.

A few of the many advantages of enlisting independent broker support:

  • Access to the broadest possible market of lenders and development finance products, as many specialist service providers offer their services exclusively via introductions.
  • Independent expert advice on the various types of development finance products available, helping you make the right choice for your project.
  • A knowledgeable and experienced professional to negotiate on your behalf, ensuring you get the best possible deal from a top-rated lender.
  • The advice and support you need to present a convincing application, complete with all necessary documentation and supporting evidence.
  • A faster and simpler application process – essential when looking to secure funding in a time-critical scenario.

As broker support is offered 100% free of charge to the client, it simply makes sense to take advantage of their knowledge and expertise.

For more information on the logistics of development finance or to get your application underway, contact a member of the team at UK Property Finance today.

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Is it Possible to Save on Stamp Duty When Buying a Home?

When the stamp duty holiday came to an end, millions of movers and first-time buyers once again found themselves facing painful levies on already elevated home purchase costs.

In the UK, stamp duty land tax (SDTL) is payable upon the purchase of a home, calculated in accordance with the value of the property.

In England and Northern Ireland, you pay nothing on the first £125,000; 2% between £125,000 and £250,000; 5% between £250,000 and £925,000; 10% on the proportion between £925,000 and £1,500,000 and 12% on anything over £1,500,000.

Different rules apply in Wales and Scotland, but stamp duty is nonetheless payable on most properties.

But what comparatively few homebuyers realise is that it is perfectly possible to at least reduce the amount of stamp duty you are liable for. In fact, Shane Mockler, head of new business SDLT at Cap Ex Associates Tax Ltd, said that around 25% of buyers needlessly overpay.

“It’s estimated that one in four transactions overpay due to the various types or property acquisitions that are incentivised by the UK government,” he said, adding that “there are almost 50 relief and exemptions available to purchasers of property in the UK.”

First-time buyer exemption

For example, first-time buyers are exempt from stamp duty when purchasing properties valued at £300,000 or less. This translates to tens of thousands of annual property transactions where no stamp duty is payable. First-time buyers purchasing properties valued between £300,000 and £500,000 pay 5% stamp duty, but only on the amount above £300,000 rather than the entire price. This amounts to a potential saving of up to £5,000.

Mixed-use properties

Mixed-use properties and properties with a commercial element can (in some instances) qualify for a partial stamp duty discount, with the maximum rate payable being 5%. This includes properties such as a flat connected with a shop, or properties bought alongside forests or farmland. But as all mixed-use properties are unique, in terms of both their configuration and their eligibility for stamp duty relief, expert legal representation is usually needed to know where you stand.

Unconventional homes

Certain types of homes considered ‘unconventional’ may qualify for a stamp duty discount, or could be considered exempt from stamp duty entirely. For example, homes that do not occupy permanent land space, such as mobile homes, caravans and houseboats, are exempt from stamp duty, irrespective of their location and value. Elsewhere, properties considered unfit for human habitation at the time of their purchase may qualify for a lower stamp duty band.

Removable fixtures and fittings

Comparatively few homebuyers know that when buying a property, stamp duty does not apply to the “chattels” of the home. “Simply defined, chattels are movable objects and cover things such as carpets, curtains, furniture, ovens, fridges and other movable objects that are left in the house by the vendor,” explained Mockler. By contrast, fixed furniture and fittings like bathrooms, kitchens and built-in wardrobes are liable for stamp duty, and must be included in the respective calculations.

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Has the Day of the Amateur Landlord Come to An End?

Research suggests that more established landlords than ever before are opening limited companies to benefit from tax incentives when purchasing BTL homes and running their private lettings businesses. Elsewhere, some polls have indicated that economic pressures on the BTL landlord community are prompting many to consider liquidating their portfolios and exiting the market entirely.

All of which has reinforced the views of some commentators that the day of the ‘amateur’ landlord is coming to an end. But is this really the case?

As with most things, it depends on your definition of an ‘amateur’ landlord. For regulatory purposes, amateur landlords are classified as non-portfolio landlords. This, according to the Prudential Regulatory Authority (PRA), means a landlord with three or fewer BTL properties in their portfolios.

Consequently, an investor managing three BTL properties at the same time and running a successful business would still, in regulator returns, be referred to as an amateur landlord. Given how the overwhelming majority of BTL landlords in the UK have three or fewer properties under their ownership, referring to this entire community as ‘amateur’ landlords is questionable…if not quite condescending.

A Profitable Long-Term Venture

Up and down the UK, sky-high monthly rents are playing directly into the pockets of BTL landlords in most key regions. Unsurprisingly, recent figures published by UK Finance indicate a huge spike in interest in first-time buy-to let investments among newcomers aged 55 and over last year.

In 2021, there were approximately 17,570 buy-to-let property investors within this age group. This represents an increase of more than 56% on the year before, when there were just 11,240 buy-to let investors aged 55 or over.

This suggests that more people than ever before are looking into the UK’s booming BTL sector. With average property prices only set to continue increasing at record pace, picking up a property to let out is not going to get any cheaper; something that could explain the ‘now or never’ mantra being adapted by many, who see holding out any longer as a risky decision.

A Premature Declaration

For a long list of reasons, proclamations regarding the end of the age of the amateur landlord are premature to say the least. For one thing, the number of people spanning most age groups looking into BTL investments as first-timers is actually on the rise.

Data published by Zoopla this week indicates a 11% increase in private rental prices during the first three months of 2022, taking the average cost of renting a UK home to £995. All of which is adding up to a hugely profitable long-term venture for investors with rental properties in the right places.

In addition, a report published by the London School of Economics on behalf of the National Residential Landlords Association indicated that a full 64% of landlords in the UK have three properties or less. 32% of which have one unit, whereas 13% have three properties under their management. Figures that call into question the definition of an ‘amateur’ landlord, and confirm that the age of the amateur landlord is far from the end.

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Mortgages

Boris Johnson Planning to Bring Back Right to Buy

As part of his pledge to put an end to the UK’s escalating housing crisis, Boris Johnson has laid out plans to introduce a new take on the Right to Buy initiative. Initially devised by Margaret Thatcher, the Right to Buy scheme gave millions of council house tenants across England the legal right to purchase their homes, following a certain length of residency.

The new proposal would result in around 2.5 million individuals and families who rent from housing associations the legal right to purchase their homes at a discounted price. The original scheme was limited to council homes – separate schemes were available for housing association tenants, but with significantly lower discounts up for grabs.

According to a government source, the scheme would be identical to the original Right to Buy initiative, though would extend the same rights to housing association tenants.

Downing Street insiders believe that the extension of the Right to Buy scheme would bode well for the conservative party in the Midlands and the Northeast, where a significant proportion of those who would benefit from the initiative reside.

Following the party’s disappointing performance in the recent local elections, the Tories are now setting their sights on helping more people become property owners to boost their approval rating in key regions.

An Opportunity for up to 5 Million People

Originally introduced in 1980 by Margaret Thatcher, the Right to Buy provided council tenants who had lived continuously in council housing for a specific period of time the opportunity to purchase their home at a discounted price.

The same scheme remains in place to this day, and has helped hundreds of thousands of council property tenants get on the property ladder. Now, Boris Johnson intends to extend the same rights to housing association tenants which would see around 2.5 million households, or up to 5 million people, benefiting from the right to buy their homes at a discounted price.

Under the scheme, housing association tenants would be able to purchase their homes at a discount of up to 70%, depending on how long they have lived in the property. The government trial had a pilot of the scheme in 2018 in the Midlands, after which no immediate plans to extend the initiative were announced.

While the move has been welcomed by many, critics argue that average UK house prices are still too high for most first-time buyers – even when taking Right to Buy discounts into account. Elsewhere, others have said that the scheme does nothing to improve the UK’s growing housing shortage, and that the government should be investing more heavily in the construction of more affordable housing.

Speaking with the Telegraph newspaper, Robert Jenrick was nonetheless adamant that extending Right to Buy to all housing association tenants in England was the right thing to do.

“Now is the time to extend the right to all tenants,” he said.

“Conservatives must be the party of home ownership, and along with building more homes, finding new routes to ownership should be at the heart of our mission.”

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Private Rental Costs in the UK Hit a New 14-Year High

UK rental prices have skyrocketed to a new 14-year high, achieving the fastest annual growth since the 2008 financial crisis. Coupled with the unprecedented cost of living increases, private tenants across the country are finding it more and more difficult to make ends meet.

Data published by Zoopla this week indicates an 11% increase in private rental prices during the first three months of 2022, taking the average cost of renting a UK home to £995. This equates to an additional £88 per month, compared to average rents at the start of the pandemic.

According to Zoopla, this extraordinary growth is attributed to dwindling availability within the private renting sector and growing demand, pushing average monthly rents higher as inventory runs short.

Since 2016, total average monthly rental growth in the UK has topped 16%.  However, UK rents have not kept pace with average wages or consumer price inflation, making it increasingly difficult for private renters to comfortably cover their outgoings. UK CPI hit a 30-year high of 7% in March.

Significant Increase in Gross Income Spend on Rent

Skyrocketing rents in key regions across the country have triggered a major spike in the proportion of gross income households are spending on their monthly rent. According to Zoopla, average rent outgoings now account for 37% of the typical single earner’s total income in the UK.

For those renting privately in London, the figure increases further to 52% – the highest level recorded since March 2020.

Over the course of 12 months, it now costs more than £20,000 to rent a typical home in London, according to the latest estimates from Zoopla.

“The tenancy renewal numbers we have seen so far in 2022 are unprecedented,” commented Gareth Atkins, Managing Director, Lettings at Foxtons.

“Steadily increasing demand, severely limited stock and a swift rise in rental prices are all compelling reasons to renew — and renters are responding.”

A Surge in Post-Pandemic Demand

Following two years of fairly stagnant performance, average monthly rents in the capital are once again rising rapidly – up 15% at the end of Q1 this year. As the return to city living gains pace, so too does demand for properties in and around major cities like London.

“The surge of post-pandemic pent-up rental demand will normalise through Q2 and Q3 however, which means rental growth levels will start to ease,” said Gráinne Gilmore, head of research at Zoopla.

“Affordability considerations will also start to put a limit on further rental growth although this may occur at different times depending on location,”

“Rents are likely to continue rising for longer in areas which have the most constrained stock levels — currently London, Scotland and the South West.” Zoopla’s report also showed how average tenancy lengths have increased significantly over the past five years, up from 51 weeks in 2017 to 75 weeks

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Women in the Workplace: Encounters With Inequality

Today, let’s talk about the inequality women encounter in the workplace. 

Did you know that studies show that in 2022 women in the UK are paid just 90p for £1 earned by men? 

The results of the government’s latest gender pay gap report are unfortunately unsurprising to me. Amongst a cost of living crisis, it paints a dismal picture of the realities of being a woman in 2022. 

Even though companies that are gender and ethnically diverse outperform their peers, inequality is still present. What’s more, companies with low rates of both gender and racial diversity are 29% more likely to make less money. In other words, it is damaging to a company’s performance if its leadership teams do not have diversity. 

Research shows that inclusive teams make better business decisions up to 87% of the time. As you can imagine, teams with less diversity are more likely to make poor choices for the company. Diversity is needed not only for equality and basic human rights but also to succeed! Difference is a blessing not a curse and enables creativity. Every human sees the world in a unique way, has different knowledge, perspectives and points of view. 

Being a female entrepreneur is no walk in the park either! Studies show that only 29% of small businesses in the UK are run by women. But the inequality does not stop there; 1 in 3 female entrepreneurs have experienced sexism running their own business and 91% of female entrepreneurs say gender bias and inequality is common in business. I find this appalling, even setting up a business is not enough to earn equal rights in some peoples’ eyes… not that equal rights should have to be earned anyway. 

While the Sex Discrimination Act and the Equal Pay Act were established back in 1970, extensive progress towards financial equality has been limited. 

Last year, the Institute for Fiscal Studies argued that the gender pay gap has seen “barely any change” over the past 25 years once increases in women’s education are accounted for. 

Despite of this, I am forever hopeful that one day we will finally hit wholesome equality. Sheryl Sandberg once said: “In the future, there will be no female leaders. There will just be leaders.” This will be the day when there is no shock factor when a woman is in a position of power. This will be proven on the day that all the above stats sit at 50%. 

After reading this, I would like you to think about three things today: 

  1. Have you experienced inequality in your workplace? 
  2. Why are we still experiencing inequality in the workplace? 
  3. How can we change the inequality that is being presented? 

Resources:

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20% of Brits Now Use Loans to Buy Gifts for Parties and Events

UK households may be feeling the pinch of unprecedented living cost increases, but it seems even record inflation cannot quell the country’s collective craving for good times. According to the latest data published by Forbes Advisor, around 20% of Brits are now using loans (and other financial products) to buy gifts for important events and celebrations.

According to Forbes, 11% of UK residents have used personal loans to cover the costs of attending and buying gifts for events like birthdays, weddings and christenings. Similarly, 11% said they had resorted to potentially expensive payday loans to ensure they were able to attend parties and events, while a full 26% said that they put the costs of attending events on their credit cards.

Elsewhere, 12% said that they had borrowed money from family or friends to cover the attendance and gift costs of these ‘life events’ and other important happenings.

Cost of Living Increases Hit Hard

With UK inflation at a 30-year high of 5.5%, every UK household is feeling the pinch of unprecedented cost of living increases. As a result, 26% of those surveyed by Forbes said that they have had to spend less on parties and events (attendance and giving gifts) due to rising fuel, energy and food costs.

Around 13% said they have been rendered unable to buy gifts for such events or attend them in the first place due to ongoing living costs hikes.

Even so, Brits continue to spend surprisingly significant amounts of money on attending important events. According to the Forbes survey, this is how much the average person spends on attending and buying gifts for major life events:

  1. Family wedding – £235
  2. Hen/stag party – £199
  3. Friend’s wedding – £199
  4. Graduation – £189
  5. Baby shower – £165
  6. Engagement party – £159
  7. Anniversary party – £156
  8. Naming ceremony – £154
  9. Adult birthday party – £142
  10.  Housewarming – £138

The financial crisis is putting a major strain on relationships, with more than 40% of those surveyed admitting they had fallen out with friends and family members over event attendance and gift costs. In addition, more than 50% said that if it were socially acceptable to do so, they would prefer not to give gifts when attending important events like those above.

“The end of Covid-related restrictions on international travel, guest numbers at events such as weddings, self-isolation and mask wearing, is a massive breath of fresh air as we head towards a brighter spring and summer of 2022,” commented Laura Howard, personal finance expert at Forbes Advisor.

“Yet, as we come out of one crisis, the weight bears down heavier on another – the soaring cost of living. Of course, this is in no way comparable to the suffering that millions of Ukrainians fleeing their homes as a result of the war are facing right now. But, for those of us on UK soil it’s the kind of worry that can keep us awake at night.

“Inflation as measured by the Consumer Prices Index (CPI) measured 5.5% in January – a 30-year high – while the figure for February is almost certain to be higher still. And even that figure will not reflect the next hike in energy costs set to whack household budgets in April.

“We have little choice but to power our homes, fill up our cars with fuel, and do the weekly food shop – all costs which have soared since the pandemic began. But for more and more households, this is simply where the money runs out and ‘extras’ such as life celebrations become unaffordable,”

“It’s little surprise then that an increasing number of us are resorting to borrowing to fund these celebrations – in some cases even using payday loans,”

“Cutting back on expenses is no easy feat, especially now when cheap energy deals are no longer available. But it’s worth seeing if there are some unnecessary expenses to tackle.”

Is it Time to Switch?

Ms Howard went on to highlight the potential savings many households could make by switching to new lenders and Financial Service providers.

“Are you paying interest on credit card debt, for example, when you could transfer the outstanding amount to a 0% balance transfer deal? Are you free to switch your better mortgage deal or reserve your next one (which you can do between three and six months in advance) before the next likely rise in interest rates?” she said.

“It could simply be that you are paying for services or features that you don’t use, such as on your broadband and TV deal, for example,”

“Any cash that’s being unnecessarily spent is always likely to find a welcome home, such as to fund life events and celebrations this year. But if it’s simply not available, the key is not to buckle under pressure and spend what you don’t have. Being creative and thoughtful with gift-giving can be a remarkably effective substitute that’s also often likely to be remembered for longer.”

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Annual House Price Growth Hits 17-Year High

Record cost-of-living increases continue to have little to no impact on the UK’s collective appetite to get on the property ladder, as demand continues to outpace supply in all areas of the country. According to Nationwide, insatiable demand has propelled annual house price growth to its fastest pace in more than 17 years – an astonishing 14.3% year-on-year growth rate in February.

This is the fastest annual growth the market has recorded since November 2004, even as the UK faces unprecedented inflation and an escalating cost-of-living crisis.

The figures from Nationwide indicate that the average asking price for a UK home increased by around £33,000 over the past year alone. It now costs £265,312 to buy a home in the UK, making the prospect of home ownership increasingly less plausible for an entire generation of would-be homebuyers.

Nationwide commented that the sector had demonstrated “a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs”.

House Prices Up 20% in Two Years

Three consecutive interest rate hikes and record-high energy costs are doing little to dampen house price growth acceleration across the UK. Average house prices are now more than 20% higher than they were at the beginning of 2020, before the pandemic plunged the country into lockdown.

Once again, London recorded the lowest average house price growth at just 7%, though remains home to the UK’s highest average prices by a considerable margin.

“A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices,” said Nationwide’s chief economist, Robert Gardner.

Demand for homes is being sustained by the current strength of the UK job market, along with the extent to which many first-time buyers used lockdown to save towards deposits on their first homes.

An Inevitable Slowdown to Follow?

For the most part, analysts have written off a prospect of a housing bubble entirely. However, market-watchers believe that a gradual slowdown in average house price is inevitable, and will creep into the equation towards the end of the year.

The Office for Budget Responsibility (OBR), for example, predicted that house prices would fall in 2022. As living standards continue to plummet in the face of unprecedented living costs, many would-be buyers may be forced to rethink or delay their property purchases while struggling to make ends meet.

Speaking on behalf of Pantheon Macroeconomics, senior UK economist, Gabriella Dickens, said that while March had brought little other than record-breaking performance for the housing sector, it would also most likely represent the “peak for house price growth” this year.

“For starters, mortgage rates look set to rise further in the coming months,” she said.

“In addition, we expect housing demand to be hit by a sharp drop in households’ real disposable incomes.”

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Mortgages

How Will the Most Recent Hike in Interest Rates to 1% Impact Your Mortgage?

The Bank of England has, for the fourth time in a row, increased interest rates this week. In a bid to tackle the spiralling inflation rate, the bank has raised rates from 0.75% to 1%. With the cost of living crisis seriously effecting household budgets and causing financial stress for millions of UK citizens, it is critical that the Bank of England find a way to stabilise the economy to prevent inflation rising even more.

The increase means any homeowners on variable rate mortgages will see their monthly repayments increase, whilst those on fixed rate will be safe until the end of their fixed period.

The Bank is aiming to bring down the inflation rate, which currently is at 7%, back to their target of 2%, by increasing interest rates which will discourage lending and encourage saving, but experts are warning that by doing this the Bank are pushing people to their financial limits. Some, however, believe that despite the hike, interest rates are still relatively low.            

Personal finance analyst at investing platform Bestinvest, Alice Haine said “While mortgage rates will rise, the cost of borrowing is still historically low, so there’s no need to go into full panic mode yet.

“Yes, most lenders will pass the rate rise onto borrowers, but with interest rates still very much on the low side, the increase in percentage terms is modest.”

She went on to say that with living costs being so high, the pressure was increasing: “This might not have been an issue in a normal economic climate, but in the current cost-of-living crisis every pound matters as households struggle to balance the books.”

Some experts feel that the Bank of England’s actions will be either a grave mistake or incredibly insightful, depending on what happens over the months to come.

James Andrews, senior personal finance editor at money.co.uk, said, “One thing we can say for certain,” he added, “is that it will do almost nothing to bring down the cost of living for households across the UK – which is being driven by global energy prices and supply chain issues.

“Another thing we can say for certain is that it will make borrowing more expensive at a time when more and more people are being forced into debt to meet rising bills.

“We can also say with some certainty that it will put downward pressure on house prices – making mortgages more expensive at a time that rising essential bills make them less affordable too.”

How Does the Increase Effect Your Mortgage?

There are approximately 1.1 million homeowners on standard variable rates in the UK and 850,000 people with a tracker, and all of them should expect to see their payments increase.

It is typical for lenders to adjust interest rates accordingly when the Bank of England raises rates, although they are under no obligation to do so, but generally they do tend to pass on the increase.

Tracker deal clients are expected to see an immediate increase in payments.

Sarah Coles senior personal finance analyst at Hargreaves Lansdown, said: “Banks will be falling over themselves to pass on the rise to variable rate mortgage customers before the ink dries on the Bank of England announcement,”

As an example, a homeowner with a 25 year standard variable rate mortgage of £300,000 can expect to see a monthly increase of around £40. The advice is to try to remortgage on a fixed interest rate to protect from any further increases.

How Does the Interest Rate Increase Effect Fixed Rate Mortgages?

Essentially those on fixed rates (approximately 75%) will not be effected. However, many of these deals will be coming to an end this year and therefore it is advisable to look around before the end of the period, bearing in mind that mortgage offers are valid for 6 months.

Alice said: “Shopping around now for a deal might also be wise for those on a fixed-rate deal with a 2022 expiry date or those looking to remortgage, as mortgage offers are often valid for a number of months. This will protect them from the effect of further hikes and help to avoid a financial shock.”

Are Ther Any Pros to the Increase in Base Rate?

The one’s benefitting from the increase are the savers! With the increase in rates, interest on savings will also increase which is great news for those trying to save up a deposit.

The downside here is that with the inflation rate at a forty year high, the interest on savings is eroded by the cost of living crisis.

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Mortgages

Seven out of Ten First Time Buyers Delay Getting on to the Property Ladder as the Cost of Living Continues to Rise

Seventy percent of first time buyers are holding back on buying their first property as the cost of living continues to rise, according to a report released by Nationwide Building Society.

The research shows that people who were planning to get their foot onto the property ladder in the next 12 to 24 months have made the decision to hold off, chiefly due to the difficulty of saving up the deposit. With the cost of living spiralling, rocketing fuel prices, energy cap increases and the war in Ukraine, British household monthly outgoings have increased to the point where many potential buyers have no disposable income and therefore are unable to save.           

The expected time that first time buyers were expected to delay for, averaged out at two years, according to the report. Broken down, the figures showed that 57% would delay for two years, while 77% up to three years. Nearly 20% stated that they would now not buy for over three years in order to be able to raise the funds needed.

The report showed that there were variations in the figures according to region, with 23% in the South West and 28% in Wales saying they would wait more than three years.

The survey involved 2,051 participants, all first time buyers looking to purchase within the next five years. The biggest hurdle they identified was the inability to raise the deposit.

With the typical deposit at 10% it’s no wonder that first time buyers are struggling, as this equates to around 60% of the average gross annual income.

As far as the opinion on the most difficult aspect of home ownership, 28% felt it was coming up with the deposit, 14% thought that it was the ability to borrow a sufficient amount for what they wanted to buy and 12% considered keeping up the monthly payments to be the most concerning issue.

Nine out ten people surveyed felt that the current cost of living and the predicted further increases in interest rates and energy prices were the main reasons for not being able raise funds. 50% have reduced the amount they are saving, whilst a further 38% are using savings they have to help pay their monthly bills.

One of the questions put to the participants was whether they felt 2022 was a good time to purchase their first property resulting in an almost equal but split response, with 51% saying no and 49% saying yes.

Another problem that has arisen for first time buyers is the ever increasing property prices which has priced many potential buyers out of the market. Coupled with rising rental costs, 43% of tenants said saving for a deposit is just impossible, according to the report.

69% are considering looking at areas with more competitive housing prices in order to be able to buy a larger property. Willingness to move away from London and it’s typically high prices was recorded at 79%.

The report showed that most first time buyers expected to be on the property ladder at around 27 years old, although 30% felt that buying before 30 years old was highly unlikely due to financial pressures.

Due to all of these limitations, many first time buyers are considering the option to buy with someone else in order to realistically have a chance of making their first home purchase.

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