In June this year it was revealed that the supply of properties for sale in Greater Manchester had plummeted by 70% since 2008 and in particular, there is a shortage of 2 bed properties available. Added to this Government statistics have also indicated that average house prices in Manchester are now 8 times higher than average salaries.
Areas like Trafford have seen the biggest increase in the gap between salaries and house prices at 8.9 times higher, but even in more affordable areas like Salford the average house price is 4.8 times higher than average salaries.
Young people are also concerned that the banking crash has done very little to slow down the continuing rise in house prices and with mortgage lenders traditionally offering a maximum of three times a person’s salary, it is increasingly more difficult to get on to the housing ladder.
While this may seem like bad news for the first time buyer dreaming of purchasing their own home, there is lots of help available and
There are a number of new initiatives that have been put in place to help first time buyers.
Mortgage lenders have moved away from strict salary multiples, to looking much more closely at an individual person or family’s incomings and outgoings.
Government saving scheme or help to buy ISA is designed to help young people save for a house deposit. For every £200 a month you save the government will give you £50.
Help to buy scheme is a government scheme for those who have a small deposit of 5%.There are 2 types of loans:-
Equity loans – where you can borrow 20% of the purchase price of a ‘new build’ interest-free for the first five years.
Mortgage guarantees – are available for new and old properties across the UK. The government undertakes to cover any of your mortgage lender’s losses if you have any problems paying it back.
Starter Home scheme is a new government plan where 200,000 new build homes are available to first-time buyers under 40 years old with a minimum of 20% off the market price.
At Home Estate Agents we are experienced in dealing with first time buyers and have helped thousands of clients take their first step on to the property ladder. We are always available to talk through the many options available to help you buy your first home.
For further advice contact your local Home Estate Agents office
URMSTON: 01617471177 STRETFORD: 01618713939 MONTON: 01617898383