It is easy to see why many existing homeowners in Inner London have decided to head further out in the capital. With remote working and the pressure of lockdown in place, a lot of people have grown tired of life in the heart of the city, favouring a new start in quieter surroundings.
The stamp duty holiday has been helpful in the capital, and it has been helpful to existing property holders. There is no denying these groups of buyers have received more assistance than other buyers.
However, it appears as though there has been a switch in what first-time buyers are looking for.
There are homes becoming available in Inner London
With London leavers moving out of the inner areas of the capital in greater numbers, there is a growing supply of property in these areas.
You might think this will provide first-time buyers with the chance to step on the property ladder close to the centre of the capital. In some cases, it will.
Of course, it needs to be remembered that first-time buyers are not that different from other property buyers. In the current climate, they will still be looking for space, and they will have a greater sense of freedom when it comes to finding their new home.
In this regard, it shouldn’t be a surprise to learn first-time buyers are also looking towards the suburbs with greater intent.
A study shows new buyers are moving away from the heart of big cities
Trussle has spoken with many first-time buyers, and asked them what they are looking for. 29% of first-time buyers say they plan to buy a home in the city. However, 53% of first-time buyers said they are looking to buy property in the suburbs.
Miles Robinson, head of mortgages at online mortgage broker Trussle, said: “The pandemic has increased the financial pressure many first-time buyers were already feeling, as well as creating a seismic shift in what people expect from their home. As a result, financial pressures and rising house prices, alongside a desire for more outdoor space, means demand in more affordable rural locations is currently outpacing that for urban destinations. But lenders are starting to return to the market with higher LTV products, which could make more expensive homes in the city more accessible again.”
Miles Robinson concluded by saying; “And, we may see renewed interest in city living once the vaccine has been rolled out and things begin to return to normality. As such, only time will tell if the current lust for country properties is a long-term trend or more of a spontaneous response.”
A key factor in this decision comes with many respondents saying that they find urban house prices to be a challenge when stepping on the property ladder. 65% of respondents said it was “impossible” to step on the property ladder.
The research suggests the average budget for a first-time property buyer was £174,266.
If you are looking to make a move in the Bromley property market, and you would like to speak with local experts, please get in touch. If you would like to arrange a property valuation, contact us and we will set this up for you. You can phone your BR Estate Agent on 020 3633 8620 from 9am till 9pm seven days a week or visit our website www.br-estateagent.co.uk for more information.