The current average price for a property in the UK is £226,756, according to the ONS. In the past year, housing prices have increased by about 5% for the majority of the UK, apart from Scotland who had a huge 7.7% increase. The currently inflating cost is not predicted to slow, so now is a good time to look into buying your first home.
But how do you get on the property ladder?
Do your research
It may sound overly pragmatic to suggest, but the first step to moving out is research. Use sites like Rightmove to assess where you’d like to move, what particular you’d need, and how much you can afford. It’s important to go for a walk around the neighbourhood to make sure your comfortable living in the area.
The key thing to remember is to be realistic. Unless you can afford it, don’t overstretch your budget for the sake of an unnecessary feature- we’d all love an indoor swimming pool but it’s generally not an essential!
Start filling up your piggybank
If you haven’t already stashed a fair few pound coins away in your ceramics, then now is the time to save! Becoming a homeowner is one of the most expensive things in life for many people – but it’s certainly not out of reach… even if you have a small budget. Sorting out your finances means you’ll have a clearer vision of what you can afford and how much your mortgage payments will cost every month. Use our blog to find out how to cut down on your monthly outgoings!
Don’t forget to account for all the extra fees that come with buying a house, such as stamp duty, deposits, estate agent fees and so on.
Could a Help to Buy Scheme help you?
The Government is working very hard to encourage first-time buyers to make use of the Help to Buy schemes. The schemes aim to help you if you cannot get enough money together to afford the mortgage fees and deposits required for ownership. A Help to Buy ISA, for example, is a savings account that will give you an extra 25% of your savings to go towards the exchange deposit.
Make a suitable offer
Once you’ve found an ideal home, making the offer is nerve-wracking as it’s likely going to be the biggest amount of money you’ll ever spend. You obviously don’t want to overpay, so it’s important to negotiate. Important factors that may affect the price are:
- Is the property in need of repair or redecoration?
- Is the property in a desirable location i.e. near to good schools or good transport links?
- Is the property likely to be impacted by a natural disasters like floods or coastal collapse?
- Are there any big nearby building proposals like a motorway that could adversely affect the house’s aesthetic? Or are there any good developments like a shopping centre that would increase local convenience?
Give yourself ample time to understand all the moving processes, and make sure you are financially ready for your first home.