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How the Covid-19 pandemic affected the First-Time Buyers across the UK?


How the Covid-19 pandemic affected the First-Time Buyers across the UK?

Property Survey Insights

The Property Experts at our VG Homes Team are always up-to-date with the latest property & industry news. In light of the Covid-19 pandemic, all of us have experienced significant changes in our daily lifestyles and day-to-day routines, which, in turn, has affected significantly the property industry and the housing market as well.

We take pride in trying to provide always professional as well as personalised service to our cherished clients, therefore, we are always trying to understand better their property needs. This is the reason why we decided it is a good idea to conduct a few surveys to find out first-hand how the pandemic has affected our clients in terms of their property needs & preferences.

We divided our clients in a few focus groups and today, we are delighted to present you the results of our First-time Buyers Focus group, highlighting how the pandemic has affected their decision to buy their first home – there are some big unexpected surprises even for us!

Let’s see!

1. The pandemic has delayed First-time Buyers by over six months

To begin with, undoubtedly, the pandemic has affected absolutely everything in our lives - from finances to demand for properties. As a result, the statistics show that first time buyers have delayed getting on the property ladder by an average of SIX MONTHS.

As abovementioned, delays in moving due to the recent situation are obvious consequences of the events in the last year and a half since the pandemic started. However, on the bright side, the extent of the delay reported by potential first time buyers suggests that there is still demand for the property market and many first-time buyers are waiting for the restrictions to be finally eased and for furloughs and job uncertainties to end and for people to return to full-time employment and receive full-time salaries.

2. Garden space & fast broadband now top the wish lists

A great 73% of the first time buyers we surveyed have said that good broadband speeds are more important to them now that they were before the pandemic with the reason behind that the rise in home office working and spending even more time online. The same goes for having an own garden or outdoor space - 73% of our respondents now think that having access to the outdoors is an important part of their new home and put “Having a garden” on the top list of their priorities when they start hunting for their new home.

3. More buyers will use a Government scheme to help them get on the property ladder

Over 80% of the buyers we asked, plan on using a Government scheme to help them get on the property ladder. One of the most popular ones is the new mortgage guarantee scheme, with which buyers can get on the ladder with just a 5% deposit, which over 1 in 5 said they would use.

4. Over 60% have saved more money for their property deposit during the pandemic

While the pandemic has clearly been a huge blow to economy, it has had its (small) advantages to some of our clients. Two thirds of the first time buyers we spoke to said they managed to save more money for their house deposit over the last year and the reason is down to the restrictions on their social lives, including eating out, entertainment, travel, holidays, etc. which means that the pandemic has turned them into ‘accidental savers’ and they can use their spare cash to boost their home deposit.

5. 1/3 buyers are waiting for the stamp duty holiday to END

An interesting outcome of our survey is that 1 in 3 of the buyers we spoke to are actually waiting for the stamp duty holiday to end before they look at purchasing a property. The stamp duty holiday has lots of advantages as we have discussed in one of our previous blog posts and this is the reason why many buyers are trying to take advantage of it but that has resulted in huge buyers’ demand and respectively in a huge increase in house prices because the supply is not as high as the buyers’ demand. In this regard, 1/3 buyers are waiting for the stamp duty holiday to end because they predict that house prices will fall after that as well as the buyers’ demand.

6. 1 in 3 first time buyers have been locked out of the market due to a lack of mortgage products

A third of first time buyers haven’t been able to get on the market because of a lack of mortgage products suitable to their needs. In addition, over half of respondents said that their financial concerns had increased as a result of the pandemic, and according to our statistics, this affects all age ranges across all regions in Scotland.

7. …but in general, first time buyers still feel optimistic

Even though half of first time buyers have experienced a fall-through in their property transaction during the pandemic and the pandemic has delayed their dreams for coming true with 6 months, our respondents mainly remain positive about the idea of owning their dream home soon. To put it numbers, a good 51% now feel either ‘somewhat’ or ‘much more’ positive about owning a home post-pandemic and trying to look on the brighter side of the situation, while 27% haven’t changed their opinion and only 22% feel more negative about their chances thanks to the pandemic.

If you wish to receive the latest property news from Scotland, delivered straight to your inbox and the latest updates about our properties currently on the market, subscribe to our weekly newsletter here and we’ll make sure to keep you updated!

To all first-time buyers, if you’re looking for a mortgage advice, we have a dedicated team of financial advisors who can offer you independent mortgage advice!

And if you’re looking for your first dream home, check out the For Sale section on our website, where you’ll find all of our available properties for sale off plan in the beautiful Clyde Valley and the opportunity to take advantage of our Early Buyer Privilege & Special Designed for You Extra Packages if you reserve your home early enough!

We know that buying your first home is an exciting milestone, but it can be really confusing & complicated, therefore, we offer professional & personalised guidance & advice every step of the way until you find the right place for you to call your own!

Ready to get started?

Contact our friendly Lanark Branch Team to learn more about our services!

Team VG Homes

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