Paramount Pub Sale

150 West End Lane
West Hampstead
London NW6 1SD

Tel: 020 7644 2333
Email: Investments
Web: Commercial Sales
Blog: Commercial Property
Search: Commercial Property
Twitter: Commercial Property
Facebook: Commercial Property
Youtube: Commercial Property
RSS: Commercial Property For Sale

Property Sales News

First Time Property Buyers
London Housing Market
Mortgages & Home Loans
National Association Estate Agents
London Property Sales
Property Law & Legislation
Property Market Surveys
House & Property Prices
UK Property Portals
Flats & Houses For Sale

Property Rental News

ARLA Lettings Advice
Health & Safety Issues
Landlord & Tenant Legislation
Letting Agency Regulations
London Property Management
London Property Rental
UK Rental Housing Sectors
Rental Yields & Returns
Flats & Houses For Rent

Commercial Property News

UK Bank Interest Rates
Brownfield Land Sales
Building & Construction
Change Of Business Use
Commercial Property News
Distressed Property Market
HMOs, Hostels & Care Homes
International Investment Analysys
Planning Permission & Consent
Property Development Land
Investment Yields & Returns
Property Investment Funds
Property Legislation News
UK Pub & Hotel Trade
Freehold Pubs For Sale
Royal Institute Chartered Surveyors
Social & Affordable Housing

First Time Buyers; FTB Part Buy, Part Rent, Full & Shared Ownership Property For Sale

Paramount Investments are estate and letting agents listing properties for sale suitable for first time property buyers in London, Glasgow, Birmingham, Manchester, Sheffield, Leeds, Liverpool, Bristol, Cardiff, Leicester, Hull, Newcastle and Bradford

Search our FTB property sales list of full ownership, shared ownership, shared ownership and part buy part rent properties for sale on the market suitable for first time buyers.

First Time Property Buyers: Register with Paramount Investments to receive our FTB property newsletter with the latest first time buyer news and property industry forecasts, trends, reports, surveys, predictions & analysis and up to date listings of the best ftb part buy part rent houses, shared equity flats and shared ownership apartments for sale

According to data released by the Council of Mortgage Lenders, the number of first-time buyers have reached the largest yearly total in five years.

The data shows that 216,200 first-time buyers became homeowners in 2012, a year-on-year rise of 12% on 2011 when 193,000 loans were advanced.

So why the sudden increase in first-time buyers? The GovernmentÂ’s Funding for Lending Scheme and lower mortgage rates are likely to have played a part.

Commenting on the data, CML director general Paul Smee said:

In Numbers

• 216,000 first-time buyers became homeowners in 2012
• 19,100 loans were advanced to first-time buyers in December
• 65,000 loans were advanced in the last quarter of 2012
• 42% of house purchase lending in the fourth quarter was to first-time buyers
• 80% the average loan-to-value ratio

The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.2 million mortgages in the UK, with loans worth over £1.2 trillion.

The January 2013 data will be released on Thursday 14 March 2013.

The Post Office has cut rates on its small deposit mortgage to 4.55%, potentially allowing more first-time buyers with 10% deposits to purchase their first home.

2013 is expected to be a better year for first-time buyers as banks start lowering their rates and increasing the number of mortgage products for new buyers. We have rounded up 5 of the best first-time buyer properties for sale in West Hampstead and across North West London.

Property for sale in Willesden Green

1 bed, 1 bath

A spacious one double bedroom flat on the third floor of a portered purpose built block in Willesden Green. The property is close to Cricklewood, Kilburn and Willesden Green stations and the numerous bus routes and amenities on the Kilburn High Road and Cricklewood Broadway.

Property for sale in Dollis Hill

1 bed, 1 bath

One bedroom purpose built flat on the second floor of a well presented block of flats. The property is opposite Gladstone Pack and Neasden station is within walking distance.

2 bed, 1 bath

2 bedroom flat on the ground floor of a semi-detached property. This is a well presented garden flat close to numerous bus routes and easy access to the M1 and A5.

Property for sale in Cricklewood

1 bed, 1 bath

One bedroom split level flat on the top floor of an attractive period building. Recently re-decorated and close to Cricklewood and Willesden Green stations.

2 bed, 1 bath

Two bedroom flat on the first floor of an attractive period building. This flat has been recently redecorated and is available with no onward chain.

Data released by the Council of Mortgage Lenders (CML) shows that the number of mortgage loans offered to first-time buyers increased in October. Following a slow September, lending levels returned to those last seen over the summer.

September was a slow month in the mortgage market in general, with home movers also experiencing a slowdown in lending. In October remortgage lending also reached its highest level in 6 months.

Paul Smee, CML director general explains that ‘more positive figures in October, after a slow September, suggest that the underlying trend in house purchase lending of modest year-on-year growth will continue. However, usual seasonal factors may act as a counter to lending levels in the coming months.

‘An up-tick in remortgage lending may be an early sign of a small positive impact of the Funding for Lending scheme, but it’s still too soon to evaluate the effects of the scheme.

‘If the incremental improvements in house purchase lending that we are currently seeing persist as we expect them to, then next year should feel a more stable and positive year in the housing and mortgage markets.’

In Numbers

• £2.5 billion – total loans to first-time buyers in October
• 80% - average loan-to-value (LTV) in October
• 40% of all house purchase loans in October were to first-time buyers
• 3.23 – average income multiple in October
• 13.5% proportion of income spent on interest payments
• 20% - proportion of income spent on capital and interest payments

The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.2 million mortgages in the UK, with loans worth over £1.2 trillion.

New research from Halifax shows that 28% of 25-43 year olds believe that buying a house together is a bigger commitment than getting married for 25-34 year olds.

With many first time buyers struggling to take the first step on the housing ladder, more are looking to buy with a partner instead of buying alone. The financial commitment of a mortgage means that both people in the relationship have to trust each other to contribute to the mortgage repayments, or they could risk losing their home.

Stephen Noakes, Mortgage Director at Halifax, explains: “It is interesting to see how different age groups see the market differently. Those aged 25-34, who in the majority of cases would have been buying their first house during or after the financial crisis, have clearly been affected. The fact that theirs is the only generation that thinks buying a home with someone is a bigger commitment than getting married speaks volumes.

“It is surprising to see that so many people don’t pay attention to their mortgage debts – we would always recommend that customers keep track of their finances.” 

In Numbers:

• 28% of 25-34 year olds in the UK believe that buying a house with someone is a bigger commitment than getting married
• 28% of 25-34 year olds were married when they bought their home with their partner
• 73% of 35-44 year olds were married when they bought their home with their partner
• 80% of homeowners believe it would be harder to get a mortgage if they were buying their first property now
• 1 in 10 women pay over half their average income on their mortgage
• 1 in 20 men pay over half their average income on their mortgage

Between 2008 and 2011, 100,000 first-time buyers turned to the ‘Bank of Mum and Dad’. This is according to a report written and researched by the Centre for Economics and Business Research (CEBR) on behalf of HSBC.

Since the start of the financial crisis, first-time buyer transactions have fallen from £30.2 billion to £28.5 billion per year. CEBR estimate that 18.7% of all first-time buyer transactions in the last year would not have taken place without financial help from family.

Peter Dockar, Head of Mortgages at HSBC, explains: "It's obvious that the 'bank of mum and dad' has stepped in to plug the gap left by those banks and building societies who have constricted their lending in recent years, which means that family support has become an important element of the post-crisis financing mix."

Although a large number of first-time buyers are turning to family to finance their first property, this is not likely to continue in the long-term. The report predicts that in five years only 11% will rely on family, compared to 18.75 last year.

Daniel Solomon, CEBR economist, comments on the report: "Mortgage lending to British FTBs fell off a cliff during the financial crisis. To some extent, families have moved in to fill the gap - providing gifts and loans to their first-time buyer relatives. Families' contributions have been invaluable, helping thousands to get on to the housing ladder who would have missed out otherwise.

"Families have really stepped up to the plate - supporting relatives who want to buy their first home. Now that so many first-time buyers are having difficulty getting the mortgages they would like, gifts and loans from families have become crucial to their financing mix."

In Numbers

• 19% of first-time buyer purchases would not have happened without family financing between 2008 and 2011
• £38,000 is the amount Londoners receiving family financing can expect, compared to £17,200 for those in the North East of England
•  £5.1 billion worth of first-time buyer purchases are likely to be impossible without family financing by 2017

The Council of Mortgage Lenders (CML) have released data showing that the average first-time buyer deposit fell in July to 19%. This stands at the lowest level since November 2008.

This research comes shortly after Acadametrics released their August data, which shows that UK house prices increased for the first time in three months. This brings the average cost of a home in England and Wales to £226,243 – up 2.6 percent from last year.

According to research from the BBC, the number of mortgages arranged by lenders rose by 5% from June to 49,500 – up 5 percent from a year ago. Despite this, the level of borrowing is still half the level recorded in the years before the banking crisis.

Paul Smee, CML Director, explains: "July's figures show a gradual improvement in the market, with lending approaching the sort of levels we saw at the end of the stamp duty concession.”

"While overall market conditions remain tight, new initiatives such as Funding for Lending and NewBuy have the potential to help lending to continue to ease gradually."

The BBC highlight that the ‘slight easing in mortgage rationing’ in July coincided with the Bank of England announcing its intention to offer cheaper funds to banks and building societies as part of its wider Funding for Lending scheme. This was formally launched at the start of August and it will be some time before it becomes clear if this has encouraged lenders to offer mortgages on easier terms, or boosted lending by banks to other businesses.

69% of prospective first-time buyers expecting to buy their first property it the next 12 month are University educated, according to research from property portal Rightmove. 39% of those planning to buy hold a graduate degree with 30% having a post-graduate degree.

Despite the majority of graduates struggling to pay off large students debts, the research suggests they are in a better financial position to take the first step on the housing ladder.

Graduates

• Average first-time buyer age: 30
• Average deposit: £35,000
• Percentage to receive financial assistance from family towards a deposit: 30%

School-leavers

• Average first-time buyer age: 32

• Average deposit: £25,000
• Percentage to receive financial assistance from family towards a deposit: 24%

Miles Shipside of Rightmove comments on the research: “In today’s market, getting a degree under your belt is a common pre-requisite among the constrained numbers who make it onto the housing ladder. Studying for a degree also seems to increase the chances of buying sooner. Joining the world of work straight from school may start your earning career a few years earlier, but in the current housing market it seems the downside is that it may delay being able to satisfy your home-ownership aspirations.”

HM Revenue and Customs have reported that there were 466,000 home sales in the first six months of the year.

Online property magazine Estate Agent Today reported that this was 10% more than in the same period last year when there were 425,000 sales, and 2% higher than in the second half of 2011 when there were 458,000 sales.

The increase in sales can be attributed to the end of the stamp duty holiday in March. Until then first-time buyers purchasing property under £250,000 were not required pay the stamp duty tax. The figures support this, with sales dipping 11% between the first and second quarters.

We have spoken about the effect of the stamp duty holiday on sales previously. David Warren is part of the residential sales team at Paramount Properties, and noted a rush of first-time buyers before the end of the stamp duty holiday.

He explains that ‘although there was a notable increase in prospective first-time buyers in the first three months of the year, they haven’t dropped off the radar since. The first-time buyer market is obviously quieter than 10 years ago because of a lack of mortgage finance, but those that do have finance in place want to invest in property regardless of the stamp duty tax’.

Image: Sean R

With first time buyers increasing priced out of the property market, and mortgage availability relatively low, prospective home buyers often have to turn to the bank of mum and dad to fund their purchase. With the average first time buyer 31 years old, the number of parents helping their children take the first step on the property ladder has increased dramatically.

Up until now the most common way for a parent to help with a property purchase was by providing or contributing to a deposit. Yet with many parents unable or unwilling to stump up the cash, Barclays have announced an alternative. The Family Affordability Plan allows buyers to combine their income with that of their parents to get a joint mortgage.

The Family Affordability Plan takes into account both sets of income to secure a larger, joint mortgage, which makes all borrowers legally responsible for making the monthly payments. This also means that missed payments are likely to affect the credit rating of all borrowers.

According to Barclays, a benefit of the scheme is that parents do not need to be named on the deeds, so as a co-owner, no capital gains tax would be passed onto the parent if the house was sold. The parentÂ’s name can also be removed at a later stage when remortgaging, although you will need to be in a position to prove you are able to afford the mortgage on your own.

Friends should consider renting a home together for a short while before deciding to become first time buyers on a shared basis, says one property specialist.

Last week Confused.com published a study which showed that thousands of young Brits are deciding to become MOSHers rather than buy a property on their own.

MOSH stands for Multiple Occupant Shared Home and describes people who have a mortgage shared with a friend rather than a partner, as is normally the case.

However, Mark Hayward, chairman of the National Federation of Property Professionals (NFOPP), believes that buying with mates can lead to problems if they haven't tried living together beforehand.

"It is a bit like going on holiday with good friends; you think they are extremely good friends, but by day three you realise you didn't know them quite as well as you thought you did," he said

"It might be an idea, if you are envisaging going into this sort of agreement, that you agree to rent together for a period of time beforehand to see whether in fact you actually can coexist in harmony."

The National Association of Estate Agents (NAEA) is calling on the government to do more to help first time buyers get on the property ladder.

In March this year a stamp duty exclusion on purchases up to £250,000 for first time buyers ended. The NAEA would like to see another similar scheme brought into force to kick start the market.

The government has launched its NewBuy guarantee scheme but that only applies to new build properties and does not appeal to much of the market.

Mark Hayward, President of the NAEA, said:  “Since the economic downturn took hold in 2007, we have consistently called for increased support for first time buyers to aid the wider recovery of the housing market.

“Assisting those seeking property at the start of the ladder could help to generate upward momentum in the market. The Stamp Duty Holiday provided a degree of breathing space and without it the prospect of homeownership will mean more months of saving for many people. "

When looking for a mortgage first time buyers need to do much more than simply visit the adviser at their bank or building society.

Mortgage rates and fees differ greatly between different financial institutions and although you might feel you have some degree of loyalty to the bank which gave you your first account as a teenager, failing to shop around for the best deal could cost you a considerable sum in the long term.

Indeed, Paula John, editor of Your Mortgage magazine, says that some of the best rates are with lenders you may not have heard of, let alone ever considered.

"There are a lot of different banks out there at the moment - there are some niche players that are offering very good rates. When it comes to building societies, you have got some very small ones who are offering keenly priced rates at the moment," she said.

Mortgage and Home Loan News

Schemes such as shared ownership are helping first time buyers get on the property ladder, research from the Halifax shows.

The bank has done an assessment into lower cost house purchase schemes and found that two-thirds (67 per cent) of buyers are taking their first step into property ownership.

The average price paid for properties purchased under shared ownership, shared equity and other low cost schemes comes out at 12 per cent lower than the national average for all properties at £161,839.

However, as can be expected, in London the average price was significantly higher at £243,841.

Some 79 per cent of all affordable homes purchased in 2011 were new build properties, the study showed.

In terms of volumes, 16 per cent of all transactions last year were made in the South East, followed by Scotland at 15 per cent, the North West (11 per cent) and the South West (10 per cent). In London the rate was five per cent.

The Halifax revealed that almost half (49 per cent) of those buying through such schemes were aged between 20 and 29 with a further 31 per cent aged 30 to 39. This, the bank said, proves that low cost housing schemes are a suitable way for younger people to fly the nest and become owners in their own right.

The average gross annual income of people buying such affordable homes varies from £41,947 in London to £22,660 in Yorkshire and the Humber.

Martin Ellis, housing economist at Halifax, commented: "Affordable home ownership schemes offer a cheaper alternative to buying a home but with the flexibility of allowing the occupiers to increase their share over time.

"This has particularly been true for first time buyers who account for the largest share of the market. Of all the various low cost home purchase schemes, those under the builders' own shared equity schemes and FirstBuy umbrella have proved to be the most popular.

"Whilst shared equity and other affordable housing schemes have historically performed strongly, new schemes such as the government's New Buy initiative will also play a role in meeting demand and helping to support first time buyers."

First Time Property Buyer News

There was a significant rise in the number of people taking out mortgages last month.

Figures from Council of Mortgage Lenders (CML) show that in May some £12.2 billion was loaned for property from banks and building societies.

That represents a 24 per cent increase on figures posted in April and is 13 per cent higher than May 2011.

Ray Boulger, senior technical manager at the mortgage brokerage John Charcol, believes that this is an encouraging sign, especially for first time buyers.

"What we have found at John Charcol is that the increased level of activity in the first couple of months of the year – which initially one put down partly to the run-up to the stamp duty exemption [ending] – actually didn't really fall off,” he said.

He added the new lending figures shouldn’t come as a major surprise because lenders have increasingly made new products available this year and enquiry levels from potential property buyers have remained “pretty constant”.

Millions are young Brits are becoming MOSHers, says comparison website Confused.com.
 
While MOSHing sounds like something a heavy metal fan would do, it stands for ‘Multiple Occupant Shared Home’ and involves people living together and creating alternative family units.

Sometimes it involves first time buyers who have bought a home with friends to keep down costs and in other cases it involves several professionals living in a private rented property rented with an HMO licence.

Some 57 per cent of people questioned said that they would consider buying a home with a single friend, while 30 per cent stated that they have multiple mates they would buy with.

Matt Lloyd, Head of Life Insurance at Confused.com, says: "Friendships have always to a certain degree provided an amount of financial support but that trend has certainly been increasing over recent years, with more and more people taking out ‘mates mortgages' to try and circumvent the current strict lending criteria.

“This coupled with lower overall marriage rates and higher average marriage ages for many means owning a home with a friend is a commonly considered option - and this is likely to become even more prevalent with time."

While there has been much talk about mortgage lenders putting their rates up in recent weeks, one property expert is predicting first time buyers will soon be given something to cheer about.

Ben Wilkie, editor of What Mortgage magazine, believes that banks and building societies are still very much interested in helping those taking their first step on to the property ladder.

And he feels that increased competition could help to drive back rates.

He said: “What might change things is the increased competition with more lenders trying to find themselves as the best-buy lender, which hasn't really happened in the past couple of years. But I think nowadays, lenders are happy to lend."

He added that the outlook for the housing market is positive because, in his opinion at least, house prices will not fall any further and the desire to own a home is as strong as ever.

First Time Property Buyer News

Areas which are considered to be of outstanding natural beauty have unsurprisingly seen the biggest rises in house values over the past decade.

A study conducted by Lloyds TSB found that properties in picturesque locations have seen their values rise by an average of more than £900 each month since 2002.

The Surrey hills is the most expensive area of natural beauty, with an average house price of £407,598 but the Solway Coast in southern Scotland has seen the highest value jump (up 124 per cent).

Lloyds' research found that, on average, purchasers are required to fork out £14,951 (nine per cent) more for properties in areas of natural beauty than they would for a similar home in a neighbouring district.

Suren Thiru, housing economist, Lloyds TSB said: "The value of homes within areas of outstanding natural beauty has risen substantially over the past decade. The relatively high property values in many of these locations reflect the quality of life benefits associated with living in some of our most idyllic beauty spots.

"However, the fact that property prices have typically risen considerably faster than average earnings has created significant affordability difficulties for many of those living and working in such locations."

Indeed, The English Rural Housing Association recently stated that first time buyers were finding it almost impossible to buy in rural areas because the prices being asked were simply out of their reach.

This is leading to many younger people, who have grown up in picturesque regions, being forced to move away from their home town or village when the time comes to settle down or get married.

Plans for a number of houses which are designed to reduce energy bills by up to 90 per cent have been unveiled in west London.

Called “greenhauses”, the properties are built to highly efficient German design standards and could be ideal for first-time buyers looking to keep costs down after taking their maiden step onto the property ladder.

The 30 houses and apartments at Brook Green are built using a construction type known as Passivhaus.

This system eradicates the need for traditional heating systems because the home’s walls are airtight and insulated to an exceptional standard.
“The homes require hardly any heating at all. Even in mid-winter residents will be able to heat a large living room with the equivalent of just 10 tea lights,” Grahame Hindes of developer Octavia Living told HomesandProperty.co.uk

It is believed that the average cost of heating one of the properties will be less than £80 per year.

The properties are available to be purchased outright or on a shared ownership basis and prices range between £295,000 and £750,000.

Building & Construction News

Leeds Building Society has launched a new fixed rate mortgage product for first time buyers looking to purchase a property on a shared ownership basis.

The product is fixed at 5.69 per cent for two years. It has a £199 booking fee but comes with a free valuation.

It is available up to 95 per cent of the buyer’s share, up to a maximum 75 per cent loan to value of the total property price.

Kim Rebecchi, Leeds Building Society's sales and marketing director said: "We are all well aware of the difficulties facing first time buyers buying a home.

“They can often struggle to meet the full asking price or their current income is insufficient to support a full mortgage.

"This shared ownership product facilitates that first step, and provides a starting point to staircase up to full home ownership as earning potential increases.”

There is no ERC (early repayment charge) overhang with the product, although an ERC of three per cent and two per cent would be charged for anyone who redeemed in the first and second years of the agreement respectively.

First Time Property Buyer News:

A large number of derelict properties in London could soon be renovated thanks to a new scheme being launched by the communities minister Andrew Stunell.

Currently there are more than 720,000 disused homes across England and Mr Stunnell has made £60 million available able to local authorities in order to try and tackle the issue.

It is believed that some 5,600 properties could be renovated across 20 regions using the funding.

Mr Stunell said: "I'm delighted to announce this funding boost today that will allow councils and community groups to bring these houses back to life and offer families a chance of a stable and secure home.

"We need to do much more to tackle this problem. This Government is breathing life back into these neglected neighbourhoods."

Empty properties can often attract anti-social behaviour from gangs and crimes such as vandalism so it is hoped that the government initiative will not only offer more opportunities to people looking for a home, but also help to improve the social climate in some regions.

UK Property Portal News