One of the key measures listed in the March 2021 Budget was the small mortgage guarantee scheme. Many buyers have struggled to save for a deposit, and this scheme could make all the difference to those looking to step onto the property ladder.
If you are keen to buy your first property, please contact BR Estate Agent, and we will do what we can to assist you.
Will small deposit mortgage guarantee change this process for first-time buyers?
If you are interested in the small mortgage guarantee scheme, you should check if you can buy a property under the scheme. There is a threshold of £600,000; and to be eligible for the scheme, the property you buy must be priced no higher than this level.
As of the end of March 2021, Rightmove says the following about the Bromley housing market:
“Properties around Bromley had an overall average price of £554,711 over the last year.
The majority of sales around Bromley during the last year were flats, selling for an average price of £333,769. Terraced properties sold for an average of £463,745, with semi-detached properties fetching £589,368.
Overall, sold prices around Bromley over the last year were 10% up on the previous year and 7% up on the 2018 peak of £517,256.”
Andrew Harvey, chief economist at Nationwide, said: “We have seen a significant widening in the gap between the least affordable and most affordable regions. London has been the least affordable region for most of the past 40 years - the house price to earnings ratio in the capital reached a record high in 2016 of 10.2 and remained elevated at 9.2 at the end of 2020. Scotland currently has the lowest house price to earnings ratio at 3.2, closely followed by the North at 3.3. Looking over the longer term, Northern England and Scotland have historically seen lower house price to earnings ratios than Southern England, Wales and Northern Ireland.”
There is support for property buyers
Andrew Asaam, mortgages director at Halifax, said: “We know that lockdown restrictions have made it more practically challenging for those buying and selling, but the stamp duty holiday has helped drive record levels of mortgage approvals as those held back by lockdown race to make savings. Raising a deposit is still the biggest struggle for those looking to take their first step on to the property ladder. We know that first-time buyers will benefit from steps that make a deposit more attainable and we’re committed to lending £10 billion to help people buy their first home this year.”
Zoopla’s head of research, Gráinne Gilmor spoke about first-time buyers returning to the market. Gráinne said; “Our data suggests that first-time buyers are returning to the housing market. The level of interest from people looking to step onto the housing ladder was up 5% in the first six weeks of this year compared with the last three months of 2020. We’ve also seen a 18% increase in the number of sales agreed on homes worth between £100,000 and £250,000, a price band typically associated with first-time buyers, in the first seven weeks of this year.”
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.