The mindset of property buyers has changed a lot in the past year, and this is as true for first-time buyers as it is for experienced homeowners.
At Belvoir Sutton, we have helped many people in the past year, and we have experienced a shift in demand from new buyers. This has also been borne out in recent studies.
Fewer first-time buyers are looking for city living
Trussle has spoken with many first-time buyers, and asked them what they are looking for. 29% of first-time buyers say they plan to buy a home in the city. However, 53% of first-time buyers said they are looking to buy property in the suburbs.
Miles Robinson, head of mortgages at online mortgage broker Trussle, said: “The pandemic has increased the financial pressure many first-time buyers were already feeling, as well as creating a seismic shift in what people expect from their home. As a result, financial pressures and rising house prices, alongside a desire for more outdoor space, means demand in more affordable rural locations is currently outpacing that for urban destinations. But lenders are starting to return to the market with higher LTV products, which could make more expensive homes in the city more accessible again.”
Miles Robinson concluded by saying; “And, we may see renewed interest in city living once the vaccine has been rolled out and things begin to return to normality. As such, only time will tell if the current lust for country properties is a long-term trend or more of a spontaneous response.”
A significant factor in this decision for first-time buyers is many find urban house prices to be a challenge, and often not offering value for money. 65% of respondents said it was “impossible” to step on to the property ladder in these areas.
What are you looking for in a new home?
At Belvoir Sutton, we know there has been a change in mindset in what buyers are looking for. We aim to help you make the right move for you in a challenging market.
At the end of January 2021, Rightmove said the following about house prices surrounding Carshalton Beeches Station:
“Properties around Carshalton Beeches Station had an overall average price of £585,853 over the last year.
The majority of sales around Carshalton Beeches Station during the last year were terraced properties, selling for an average price of £506,800. Semi-detached properties sold for an average of £652,600, with detached properties fetching £780,000.
Overall, sold prices around Carshalton Beeches Station over the last year were 15% up on the previous year and 6% up on the 2018 peak of £552,595.”
By comparison, in the same time-frame, they said the following about house prices for Sutton;
“Properties in Sutton had an overall average price of £445,667 over the last year.
The majority of sales in Sutton during the last year were flats, selling for an average price of £287,237. Terraced properties sold for an average of £424,844, with semi-detached properties fetching £538,398.
Overall, sold prices in Sutton over the last year were 4% up on the previous year and 5% up on the 2018 peak of £423,901.”
If you are starting the sales process, or wondering what your next move will be, you can arrange for an instant valuation to take place. Our instant valuation tool is free, quick to use and very easy to arrange, so contact Belvoir Sutton today if you would like to arrange a valuation during the lockdown period.