Housing Market is Still Favourable
It may not seem like it, but the current market conditions are still very favourable for buyers. This is largely due to the ongoing low cost of borrowing, and due to the possible savings, the stamp duty holiday offers.
Unfortunately, the consequence of these offers is an increase in demand, and in turn, an increase in property prices. As a result, estate agents are working with first-time buyers who are facing a drastically tougher challenge than they were a year ago, with house prices climbing by more than £70,000 in some areas.
Although first-time buyers will be able to secure a favourable rate of interest on their mortgage, the deposit to do so has increased, and so the time to pay it back will also increase. The current government initiatives are bittersweet, they have revitalised the market to some extent, but they have also had a detrimental impact on those who were already struggling to get on the property ladder.