Following the Chancellor’s Autumn Statement, 2016 is set to be the year of the first-time buyer, with a number of measures set to be put in place to encourage buyers to purchase a home.
Buyer confidence is set to be at an all-time high in 2016 for a number of reasons, according to Lynda Clark, editor of First Time Buyer Magazine.
Firstly, George Osborne announced a Help to Buy scheme, allowing homebuyers to secure a new home with a 5% deposit. For those who are looking to purchase property in London, buyers can now borrow up to 40% of the value of the property, while other buyers can expect to borrow 20%.
Another way in which the government are encouraging first-time buyers to get on the property ladder is through a shared ownership scheme, available to 175,000 extra households. This means that an increasing number of first-time buyers will be able to purchase between a 25% and 75% share of a property, and pay rent on the remaining amount.
For those buyers who are considering purchasing in the near future, the newly introduced Help to Buy ISA is a great opportunity for buyers to get a foot on the ladder. In 2016 and beyond, first-time buyers can enjoy a boost of £1 for every £4 saved, until a combined total of £15,000 is saved.
“2016 is an exciting time for first time buyers to take control of their finances…There are a great number of really useful buying schemes now available which are making homeownership a much more affordable option,” Clark commented.