Graysons Solicitors In The Press

Opportunities for first time buyers

With house prices now falling in Sheffield, first time buyers who have been waiting on the sidelines in recent years may finally get their chance to get on the property ladder. They may receive an extra boost from the news that prices for city centre flats are predicted to fall at a faster rate than houses.

Nationally 37% of first time buyers buy a flat as their first home. The figure is higher in large cities such as Sheffield where buyers opt for convenience over size.

“The next year looks set to present a great opportunity for Sheffield’s first time buyers”, says Niki Middleton of local solicitors Graysons. “Sheffield is rapidly approaching the point of over-supply of city centre apartments. This, together with the current lack of buyers, will lead to downward price pressure for those properties and the chance to pick up bargains.”

The equation of falling house prices, falling interest rates and annual pay rises now averaging 4% all helps to narrow the affordability gap and adds up to an opportunity that many first time buyers have been hoping for.

“First time buyers need to do some preparation before making an offer, to avoid the pitfalls that can spoil the property buying experience”, says Niki.

Here are Niki’s top tips for first time buyers:

• Offer below the asking price if buying apartments off plan. In today’s market you have a good chance of negotiating a discount on new builds.
• Arrange your mortgage before making an offer. Lenders will tell you how much they are prepared to lend you and give you a ‘decision in principle’. You don’t want to find the house of your dreams only to discover later than you can’t borrow enough to buy it.
• Budget for the associated costs of buying a property. These may include stamp duty (1% on properties over £125,000), survey fees, home insurance and removals.
• Consider a more detailed survey on older properties. Many lenders will include a free survey when you take out a mortgage with them but these are very basic. More thorough surveys are available which may uncover structural problems with properties which could cost you heavily in the long run.

Click here for more information for First Time Buyers