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It’s a first-time buyer’s market in 2024 – Blissett

by: Nathan Blissett, founder and principal mortgage adviser of Dwello Mortgages
  • 03/05/2024
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It’s a first-time buyer’s market in 2024 – Blissett
With the onset of lighter evenings and hopefully better weather, things are also looking brighter on the mortgage front, with some positive news for aspiring homeowners.

After a challenging 2023 with high mortgage rates, the tides seem to be turning in favour of first-time buyers in 2024 – which is really welcoming news for all those people looking to take that big step onto the property ladder. 

We can delve into the trends shaping the market currently with falling interest rates being the main driver for increased demand, while experts predict a decrease in mortgage rates throughout 2024, making monthly payments more manageable for first-time buyers.


Favourable property prices

The encouraging prediction is that we will be sitting at around the 4% mark by the end of the year based on inflation figures and market trends. Another area to show improvement is property prices, where potential price adjustments show some softening, with Zoopla even suggesting an average £20,000 discount on properties typically targeted at first-time buyers.

This could lead to a more attractive entry point for first-time buyers with affordable housing now in greater supply. There has definitely been a surge in first-time buyer purchases with affordability improving and new products entering the market – meaning an easing of the hurdles these applicants usually have to jump over.

For instance, the 99% mortgage from Yorkshire Building Society allows applicants to secure lending with a minimum £5,000 deposit on a property up to £500,000. There are stipulations of course, mainly: 

  • It has to be a house. 
  • It can’t be a new-build property. 
  • The applicant must be able to afford monthly repayments over a five-year fixed term.

Benefits of being a first-time buyer

There are other advantages of being a first-time buyer, which are worth thinking about for anyone considering taking this step.

This includes potentially shorter transaction times, as a first-time buyer will have no property to sell, which reduces the risk of a sale falling through. 

First-time buyers also do not have to pay stamp duty on properties valued up to £425,000 as long as they intend to live in it as their main residence.

In short, 2024 presents both diverse and promising scenarios for first-time buyers in the mortgage market. With falling interest rates, potential price adjustments, and an expected rise in first-time buyer activity, there’s a window of opportunity for many to get on the property ladder.

However, staying informed about market trends, being strategic in your approach, having a solid financial plan and seeking professional advice will always be the key to success for any first-time buyer. 

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