Despite Brexit anxiety in the UK, the UK Finance company has revealed that first time home buyers hit their highest number in 12 years in 2018. Despite this positive news, the market is still stagnant in other areas due to Brexit uncertainty. One indicator of this is the huge increase in remortgage figures that saw a steep rise of 10.8 percent in 2018. This is due to the fact that people do not want to move home rather they want to extend and improve their existing properties and also because people are looking for low rates. But why the positive impact on first time buyers? This is due to government support like reducing the amount on stamp duty and other schemes that favor first time buyers. But if there is no freeze on stamp duty for older homebuyers, where do you think first time buyers will go next? They will be caught in the current trap the system currently has. The government has to do more to improve the market.
- While new home buyers are in a good position, existing home owners tend to have more challenges in purchasing a new home.
- Part exchange, where an existing home owner can have their property purchased by a new build company, is one way of opening up the housing market.
- New build development leads to less issues than traditional home-buying and satisfies multiple markets at once.
“Brexit uncertainty continues to have a huge impact, with many would-be homemovers reluctant to look for new properties if they do not need to.”