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Challenges For First-Time Buyers

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Tue 17 Aug 2021

Challenges For First-Time Buyers

The ability of first-time buyers to step onto the property ladder is a big factor for everyone in the housing market. If you are looking to sell your home, you want as many buyers in the market as possible, and first-time buyers make up a sizable part of the housing market.

With the stamp duty holiday tapering off, FTBs will make up a larger proportion of the market again. This means everyone should pay attention to how these buyers are faring, and at Coakley & Theaker, we are here to assist you.

What do first-time buyers fear?

According to the survey carried out by, which spoke to over 1,500 first-time buyers, the issues that FTBs are most fearful of are:

  • A drop in house value or suffering negative equity, which was said by 31% of respondents

  • The clash between saving enough for a deposit versus a rise in house prices, cited by 26% of respondents

  • Being unable to afford a mortgage over the long-term, said by 22%

  • A spike in property prices relating to COVID-19, highlighted by 13% of respondents

  • Splitting from a partner after buying property together, said by 11%

Nisha Vaidya, mortgage editor at, said: “There are a few things you should keep in mind if you want to avoid negative equity. Firstly, it’s important to make sure you pay the market value for the property, so don’t shy away from negotiating on the asking price. Secondly, the larger your deposit, the more equity you will have in the property. So, if you are able to save enough, putting down a bigger deposit is a good idea.”

How can first-time buyers save for a deposit?

Some of the ways that FTBs can enhance their chances of saving enough money for a deposit include:

  • Setting a reasonable budget and the following it closely

  • Find a way to reduce the rent they pay without compromising too much on safety or their standard of living

  • Review the support on offer to FTBs

  • See if friends or family members are willing/able to help

Nisha Vaidya also said; “If you are worried about affording your mortgage, there are ways a buyer can get support. This type of support can include a payment deferral, an extension to your mortgage term and a change to your mortgage type. If you are looking to buy a new home but have financial worries, using the Help to Buy scheme could offer you the support you need. This Governmental scheme offers buyers an equity loan they can use to help buy a new build home, allowing buyers to purchase a property with a 5% deposit and receive a loan for up to 20% of the property value, which will be interest-free for 5 years. The buyers must then take out a standard mortgage for the remaining 75%.”

Nisha concluded by saying; “Getting on the property ladder can be a nerve-racking experience for first-time buyers, as being misinformed can cost greatly – whether it’s losing out on a dream home or losing a lot of money in the process. However, the best thing first-time buyers can do is do their homework thoroughly before embarking on this journey. Being equipped with the right information will cut the risk of encountering unpleasant scenarios that many first-time buyers fear, such as experiencing negative equity or being unable to afford a mortgage long-term. Once you are confident in your knowledge the process should be less risky and more exciting.”

At Coakley & Theaker, we aim to support the local community as much as we can, and we know this is an extremely trying time. A lot of people are looking for support and guidance, and if you have any property or housing related questions, we are more than happy to assist you, so contact us today.