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Conditions more favourable for first-time buyers

The scales are tipping in favour of first-time buyers as buy to let landlords are hindered by tax and regulatory measures.

In London, which has always been a buy-to-let hotspot, first-time buyers are almost half as likely to be competing with a landlord for a property than they were in 2015.

New research by Countrywide found 39% of first-time buyers in the capital faced competition from a landlord in 2015, compared to 21% in the first half of this year.  

The stamp duty surcharge on second homes and buy-to-let has really dampened landlords’ appetite to acquire new property in these high-value areas. That, combined with the phasing-out of tax relief on buy-to-let mortgage interest, has a big impact on rental profits.

Its bad news for landlords looking to increase their property portfolio but great news for first-time buyers who were being priced out. Prices have also dropped off a little locally so now is a better time to take that first step.

But we’re under no illusions, prices had been creeping up for so long that there’s still a huge affordability gap for first time buyers, many of whom rely on the ‘Bank of Mum and Dad’ or collective buying arrangements with friends. 

The average UK home price fell by 0.1% between July and August and prices also fell in the three months between March and May.

The figures suggest that when first-time buyers go head-to-head with potential landlords for the same property, first-time buyers were the successful bidders 70% of the time.

Particularly in an area like Stoke Newington there’s a real live-local movement – we have such a strong sense of community here that often vendors would prefer to sell to an owner-occupier than an investor.

    Posted 28th September 2017


    Vicky BibirisManaging Director

    Vicky started with Location Location as a junior negotiator in 2006 and within a short period of time became the top performing sales consultant in the company taking on the role of Branch Manager in 2009. Vicky's exceptional ability is backed up by her infectious enthusiasm for people and property, this led to her becoming Sales Director and equity partner in 2012. Vicky has been an integral part in establishing Location Location's reputation as one of North London's leading estate agents.