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Selling To FTBs Represent Challenges

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Mon 04 Mar 2024

Selling To FTBs Represent Challenges

When you bought your first home, you likely went through a range of emotions, and you know how difficult the process often is. Thankfully, you’re only a first-time buyer (FTB) once, but when you’re on the property ladder, the plight of FTBs is still relevant to you. It might be that these buyers are the ideal market for you to sell your home too, which means how these buyers overcome challenges directly impacts on you, and your next move.

Recent analysis by Zoopla has revealed key insights into this segment, shedding light on trends and pricing that can influence your decision to sell. At Coakley & Theaker, we are committed to providing our clients with the most relevant and actionable information to navigate the property market effectively.

FTB properties sell for less than local market average

The analysis indicates that properties appealing to first-time buyers typically sell at an average of 8%, or £20,300, below the local market average. This is a significant finding, suggesting a market average price for FTB purchases at £244,100, compared to the broader average of £264,400 across all properties. Interestingly, this comes at a time when the average price for homes purchased by FTBs has seen a modest year-on-year increase of £2,800 (1.2%), according to Zoopla.

The disparity in pricing is even more pronounced in certain regions, with discounts reaching up to 26% in areas such as London. Despite the challenges posed by rising mortgage rates, the incentives for first-time buyers remain compelling. The analysis highlights that FTBs currently face mortgage payments that are 27%, or £213 per month, higher than those who purchased in the latter part of 2022. Yet, with an average monthly mortgage cost of £990, this is still more economical than the UK's average rent of £1,221 per month, pointing to the ongoing issue of deposit affordability for many potential buyers.

The regional breakdown presents a detailed view of the market:

·         London: The most significant discount at 26%, with average FTB prices at £399,000 compared to the regional average of £536,800.

·         South East: A 17% discount, highlighting the affordability challenges in this region.

·         East of England: A more moderate discount of 6%, with the average FTB home priced at £316,700.

The preferences of first-time buyers are also evolving. In London, there's a noticeable trend towards flats, with 66% of FTBs inquiring about this property type, an increase from the previous year.

Moreover, the demographic profile of the FTB is changing, with the average age now at 33, and a growing number having dependent children. This shift underscores the increasing demand for family-sized homes, particularly terraced houses in Southern England and semi-detached homes in the Midlands, which remain popular and affordable options.

Our analysis also notes a significant trend in the proximity of property searches, with 55% of FTBs looking within a 5-mile radius of their current location, compared to 48% of other buyer groups. This suggests a desire for continuity and community, as well as the practical considerations of commuting and local amenities.

At Coakley & Theaker, we understand the complexities of the property market and the specific challenges faced by first-time buyers and those looking to sell to them. Our expertise and local knowledge in Bury St Edmunds position us uniquely to guide homeowners through the selling process, maximising the appeal of their property to this crucial market segment. Whether it's pricing your home competitively, understanding buyer preferences, or navigating the current market dynamics, our team is here to support you at every step, ensuring a smooth and successful sale.

Contact Coakley & Theaker for all your Bury St Edmunds property market needs

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 by calling us on 01284 769691.