Could subsiding legal fees help FTBs?

Could subsiding legal fees help FTBs?

A new report has proposed a number of steps which could help first-time buyers make their way onto the property ladder.

Whilst recent figures have indicated that first-time-buyer numbers are at a ten-year high following the stamp duty change, the National Association of Estate Agents have put forward a number of suggestions which could help those struggling to purchase their first home.

The first highlighted in the report is the introduction of longer fixed-rate mortgages. NAEA stated that whilst 95% loan to value mortgage options have been brought onto the market, the interest rates are high, and the fixed-rate periods are short. As such, the amount the amount that someone would need to save in order to reach the average deposit would be around £33,000, highlighting a demand for products which could reduce the total cost. NAEA suggest that a wider range of mortgage products should be on offer for FTBs, placing an emphasis on those which do not require a large payment up front.

Also focussed on in the report was the need to build more affordable housing and reduce the overall cost of moving. The organisation drew attention to the impact of the housing supply and demand gap in the UK, stating that the situation will not get better until government commitments to build more affordable homes are acted on. Similarly in terms of hoping to improve affordability, 11% of NAEA Propertymark agents stated that introducing a grant to subsidise legal fees could make things easier for first time buyers, with others also proposing that they should have the option to borrow further funds from their mortgage lender to cover these costs.

The suggestions didn’t just relate to first-time-buyers, with the organisation also suggesting that in order to keep the housing market moving incentives should be offered to those at the top of the ladder, potentially freeing up more suitable homes.

Commenting on the report was Mark Hayward. The NAEA chief executive stated: ‘The Government’s announcement to abolish stamp duty for first-time buyers has helped buyers feel like the process is more affordable. They are struggling, particularly when it comes to saving for a deposit, and this needs to be addressed.

‘However, first-time buyers are being practical. Since the stamp duty reforms we have seen evidence that outside of London in particular, they are delaying their search until they have more money saved, in order to purchase a bigger property. This means they’ll be able to stay in the property for longer, making the most of the stamp duty saving and, helping their money go even further.’

 

Georgia Owen

Georgia is the Content Executive and will be your primary contact when submitting your latest news. While studying for an LLB at the University of Liverpool, Georgia gained experience working within retail, as well as social media management. She later went on to work for a local newspaper, before starting at Today’s Conveyancer.

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