Homes for first-time buyers, typically with two bedrooms, are selling exceptionally well right now. In April 2023, agreed sales were 4% higher than in March 2019.* The market for larger homes is a little slower however interest and property choice remains.
Although this suggests that the market is in pretty good shape overall, with no steep declines, it also highlights now could be a great time to ascend the property ladder.
If you own a home that is suitable for first-time buyers, say a two-bedroom property or a starter home, you will likely get a great price, and additionally, there may be an abundance of choice in larger properties to move to.
Why is your starter home in such high demand?
There are many reasons why demand for smaller, more compact homes is high right now. First-time buyers are looking to get on the ladder before the mortgage guarantee scheme, which makes it possible for first-time buyers to buy with a 5% deposit and is due to end in December this year. Additionally, it stands to reason that smaller homes can be cheaper to run, with less council tax, energy usage and maintenance. Further, with people downsizing to smaller homes, chances are that if you want to sell, it will not take long before you are on the move.
The market is expected to further bounce back
Many analysts expect house prices to rise quite steadily in 2024. In March, average property prices rose by 0.8%.* This could be a sign that buyers realise that now is a good time to move, and it is a sure sign that the market is stabilising. Although the future is impossible to predict, you might find that in the near future, prices start to ascend more rapidly and your next home becomes out of reach.
Start looking
Perhaps the best thing to do is to check out the market as you never know what you might find that could spark your interest.
Looking for a bigger home? Looking to sell your home? Get in touch for an initial chat, whatever your property needs are!