New independent research by property developer Green Shoots reveals that 76% of people believe now is a good time for first time buyers to get on the property ladders, as prices bottom and interest rates remain low.
The survey of 2,000 respondents, carried out by independent researcher Toluna, showed that the majority of people (42%) viewed the onerous task of raising a deposit as the biggest barrier to first time buyers, closely followed by difficulty in securing a mortgage (38%). Interestingly, only 15% believed the purchase price still remained a major barrier, as price falls over the last eighteen months have vastly increased the affordability of most purchasers.
Despite developers increasingly offering incentives such as deposit paid, shared equity schemes and stamp duty/legal fees paid, only 5% of those polled believed that housebuilders should do more to help first time buyers. While over 30% felt that responsibility for helping first time buyers lay with the Government, a surprising 44% thought first time buyers should not receive any help at all from Government, developers, charities, councils or family.
John Hitchcox, Chief Executive of Green Shoots, said:
“Almost 50% of the respondents thought that first time buyers are key to the market recovery. Crucially, this research confirms that they are at last seeing value in the property market and largely believe that the biggest price falls have already occurred and the market has bottomed.
“The market decline over the last year and a half has given many first time buyers a good opportunity to save a deposit, and lenders have released a flurry of new products aimed at this sector over the last few weeks with LTVs of up to 90%. With interest rates still at their lowest ever level, now is the ideal time to get on the property ladder.
Green Shoots is helping first time buyers to get a foothold on the London property ladder at its flagship scheme, Silkstream in Colindale, North London, by providing apartments at affordable prices, with one-bedroom apartments starting at £175,000. Those buyers having difficulty raising a deposit can take advantage of Green Shoots’ own deferred equity scheme, which enables them to defer 20% of the price for five years with an interest free loan, buying for just 80% of the purchase price, or £140,000 for a one-bedroom apartment.
For more information contact selling agent Greene & Co. on 020 8205 1781 or visit www.green-shoots.uk.com.