How has the property market changed?
Today’s Property Market Is Completely Different To The Market Of Two Or More Decades Ago
If you’re a first-time buyer, your first thought may be to ask your close family and friends for their advice about purchasing your first property. However, the property market today is completely different to that of two or more decades ago. In fact, the property market is constantly changing, and any advice that parents or grandparents give is likely to be hopelessly outdated.
Due to the differences, some people you talk with may struggle to understand the process you’re going through, resulting in conflicting opinions that could cause you confusion. Your local estate agent is always going to be your best first point of contact, and with this in mind, our expert team at Lyss Homes have put together some great advice to help you understand the property market (and maybe even explain how times have changed to the older generation!)
Property Prices Don’t Rise Like They Once Did
The first major difference between the property market twenty years ago and today is that prices simply don’t rise like they once did. Between 2000 and 2005, property values doubled nationwide, leading people to believe that when they buy their own home, the property value will increase significantly without fail. Unfortunately, this isn’t the case. While prices are still rising, since 2005, property values have only risen on average by about 3% annually.
Renting Gives You Flexibility
In the 90s, finding a quality rental property was almost impossible. There were few laws in place to safeguard tenants, unlike today, where strict regulations and rules have been introduced. Older generations were, therefore, conditioned to believe that buying a property was the only real option if you wanted to find a decent place to live, and it can be difficult to convince family members that these days, renting represents a flexible and reliable option when you need time to save up a larger deposit.
Incentives From The Government
Several decades ago, there was no support from the government for first time buyers to get onto the property ladder, indeed, that kind of support was rarely needed. Today, schemes like Shared Ownership, First Homes, and Help To Buy have been introduced and are a useful way of getting onto the property ladder, so are well worth considering.
Carrying Out Checks
Many properties in the UK were built before the Second World War, so making the necessary checks on any property that you want to make an offer on is essential. This is particularly important for leasehold properties.
You should check the lease length, ground rent, and service charges, as well as any significant works that may be required.
Older flats typically were built with a 125-year lease, so in the past, few people had any concerns that their lease would dip below the 80 year limit, which makes it harder to get a mortgage. Today, though, any leashold property that was built before the 1980s may have too short a lease left to make it a worthwhile purchase.
Time It Takes To Buy A Property
In the past, purchasing a property could be a fairly quick process. Today, that’s not always the case. There are many checks to carry out – not only on the property itself but also on the buyer, with fraud and identity checks being required by legal companies, brokers, and lenders. Sellers are required to supply considerably more paperwork and information than they once did, meaning a property purchase could take around three months or more to complete.
Getting Reliable Advice
One thing that hasn’t changed in the past few decades is the need for reliable advice from a team of trusted estate agents. Here at Lyss Homes, we’re experts in the property market with a long history of helping first-time buyers. Call us today on 02080505452 or use the technology that wasn’t available to previous generations by visiting our website at http://lysshomes.co.uk to find out more!
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