First-time buyers could benefit from a number of practical initiatives to enable them to take their first steps on to the property ladder, claims a key industry body.
The National Association of Estate Agents (NAEA) believes the introduction of longer fixed-rate mortgages, increased affordable housing stock and more relaxed mortgage criteria could play a key role in transforming the UK property market.
According to the NAEA, many first-time buyers often delay purchasing a home because they want to ensure they have the largest budget possible, especially following the recent stamp duty changes.
However, the association is recommending a number of other options that could provide the practical help needed to convince first-time buyers to make an offer to secure a home.
It is estimated first-time buyers need to save £33,000 for a deposit on their first property.
The NAEA suggests the introduction of longer fixed-rate mortgages with lower monthly commitments could help reduce the need for such a large cash boost upfront.
“The government’s announcement to abolish stamp duty for first time buyers has helped buyers feel like the process is more affordable. They are struggling, particularly when it comes to saving for a deposit, and this needs to be addressed,” said Mark Hayward, NAEA’s chief executive.
In addition, the association has called for more affordable housing to be made available, with 58 per cent of NAEA members believing the government needs to do more to increase house building activity across the UK.