First Time Buyers Market Report & Analysis

publication date: Jun 22, 2012
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books

First Time Buyers Market Report & Analysis

The ideal market for a first time buyer is one which is actually gently rising. This means you purchase a property and then watch the value of your home increase year on year. For the full market update, visit the Designs on Property website.

The summary of the current and future market is one where prices are doing the opposite, ie likely to fall over the coming months. There are some areas though, which are hotter spots than the norm especially in inner London, so it is vital to work out what's happening to property prices in your local area. Visit How to check out the local property market and What to ask the agents to better understand the local market for more help.

The only advantage of a falling market to first time buyers is properties which may not have been affordable in the past, may now be within your reach. But a falling market may also mean now is not the time to buy as your property could continue to reduce in value leaving you in negative equity. 

So the reality is as a first time buyer whether you buy now or not depends on whether the market for the type of property you want to buy is rising, stable or falling. If it's rising and has been for some months, then it's likely to continue, especially if prices keep going up over the summer period this year. In stable markets the same is true. For markets which are falling, it may well be worth holding off unless you are looking at buying into a new build with some of the great First Time Buyer offers such as NewBuy, shared ownership or equity.

For information on whether any of these initiatives suit your circumstances read my article Dispelling the Myths of Shared Ownership, published in First Time Buyer Magazine.

Whatever you decide to do, you have to be mindful of is that prices may fall again and are likely to take time to rise, so if you want to buy now, you need to:- 

  • Check what's happening to local house prices in your area
  • Try to bag a bargain for 10% less than a property is worth
  • Don't financially overstretch yourself
  • Be able to afford to stay in the property for five or more years
  • Have a back-up plan such as renting out the property should you have to move for any reason

For more help and advice on whether now is a good time to buy your first home, consider purchasing our unique First Time Buyer Service, which includes an A4 ‘how to' guide, containing Dos and Don'ts, Factsheets, Checklists, Hand Tips and Forms, PLUS access to Kate and her team, by phone and email, for any queries you might have- all for just £19.99!


Email for a one of our FREE Property Checklists.

Do you have a property question? GET AN INDEPENDENT ANSWER! ASK US via our PROPERTY FORUM, email or call 0845 838 1763.

Get a helping hand with our new First Time Buyer Service for just £19.99!

Property expert, Kate Faulkner, has joined forces with B&Q and other industry experts to offer a unique service, where you purchase a ‘property project pack’ that gives you:-

  • An A4 ‘how to’ guide (approx 80 pages), containing Dos and Don’ts, Factsheets, Checklists, Handy Tips and Forms
  • Access to Kate and her team, by phone and email, for any queries you might have during your project.

See the full list of Kate Faulkner's unique Property Services here!

Need help with a property problem? Have a question? Why not call Designs on Property on 07585 897128 or Contact Us via email.
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