New Year, New Home – Now Is A Good Time To Buy
by Jo McDonagh, Sales Director of Shanly Homes Southern
The Conservatives winning December’s General Election by a large majority is good news for home buyers. With the breaking of the last three years of Parliamentary deadlock, buyers now have far greater certainty. This is anticipated to release a wave of pent-up demand from both buyers and sellers who had been holding back, especially while the election was taking place.
Thanks to lower borrowing costs and smaller deposits required, buying a home now is a far more affordable prospect than any time over the last decade.
Although the average first-time buyer deposit is currently 14%, the Government’s Help to Buy scheme will continue as it is until 2021 and for first-time buyers until 2023, meaning buyers of a new home only need a 5% deposit. As part of the initiative, the Government provides a 20% interest-free loan with the remaining 75% of the purchase cost sourced from a mortgage.
For second steppers, downsizers or those just looking to move to a better home, it will also now be easier to sell an existing property. On the back of the election result, it is predicted house prices will rise on average by 2% in 2020, double the 0.8% rate of growth of this year, according to Rightmove.
In 2018 and 2019, we saw an increasing trend among Londoners leaving the capital in search of a slower pace of life and more space for their money. Approximately 340,000 Londoners left the capital in 2018, and this is anticipated to continue in 2020. Research conducted by LonRes found 40% of vendors looking to move out of the capital for bigger homes were parents with young children and those looking to start a family. Some of the most popular destinations have been villages and towns in Surrey and Sussex. Surrey and both West and East Sussex offer a combination of attractive towns and villages, beautiful countryside and excellent connections to London, together with local employment hotspots. It is no surprise that these locations have become so sought-after.
We have seen this first-hand at our developments in these areas. Clock Field in the village of Turners Hill in West Sussex, for example, where the spacious three- and four-bedroom homes are attracting young families or those wishing to start one. Located near East Grinstead with its wide range of shops and amenities, excellent local state and independent schools, good road connectivity and with Gatwick Airport close by and easy rail access back into London in under an hour, the development has much to offer.
For those aspiring to buy a new home, 2020 looks like it will be a great year.