Using your brains to get on the property ladder

Should first time buyers enter the property market?

The signs would suggest they should with house prices rising by 1.3% in March and a further 0.1% in April 2010.

The recent introduction of the Stamp Duty holiday for first time buyers and the scrapping of HIPs by the new government should hopefully sustain the recovery. All this is good news for those who would like to get a foot on the property ladder.

However buying for the first time can still be a headache with banks continuing to set high lending criteria with favourable, or even reasonable, borrowing rates only offered to those who have a deposit of 25% or more. Despite this the number of loans granted for homebuyers in general rose by 25% in March 2010. This was 45% higher than the number granted in March last year, marking the ninth consecutive month of year on year growth in lending.

The scrapping of Home Information Packs ( HIPs) will make life easier for sellers, encouraging more to put their properties on the market ultimately changing the balance between supply and demand.

Another property supply stream could be generated by the pending increase of Capital Gains Tax (CGT) by the government at next months budget. A tax on second home owners will undoubtedly mean that sellers would rather offload their properties than pay CGT at the increased rate.

At brains, we believe that the potential increase in property stock coming onto the market will favour the purchaser and put a halt to the increase in property prices. This could be a true benefit to first time buyers, as any deposit available will undoubtedly go further to reduce the loan to value ratio and lead to offers of more preferential mortgage packages, ensuring they can more easily enter the market and keep the property chain moving.

Simon Rogers an Associate who heads up the property team at brains Solicitors is confident the recovery can be sustained. The signs are there, although the recovery will be slow and gradual.

brains are committed to making the experience for First Time Buyers as straight forward and stress free as possible by ensuring that the conveyancing process is fully explained in plain English from start to finish, with Simon and his team being on hand to discuss any queries or concerns the First Time Buyer may have before, during the course of and at the end of the transaction.

For an informal chat if you are considering purchasing a property or if you have had an offer accepted to buy your first home please do not hesitate to contact Simon at our Truro office on 01872 276363 or via our new property website at www.brains-property.com

To assist First Time Buyers brains are offering a fixed fee for First Time Buyers on freehold purchases of £500 + vat + disbursements.

brains are also offering £50 off your legal fees when you instruct brains to undertake any conveyancing work

To take advantage of these offers please contact either brains online at www.brains-property.com or by telephone at our Truro (001872 276363) or St Austell (01726 68111) offices, quoting brains offer 06110.