August 23, 2016

First time buyers undeterred by Brexit

Real estate building construction concept. Young happy blonde woman holding paper model of house. Female buyer with new flat apartment.

As a whole, buyers in the UK were untroubled in the lead up to the EU referendum vote, according to the latest monthly report form the National Association of Estate Agents (NAEA).

Demand for housing increased in June whilst the number of properties on the market and the amount of sales remained stable. In particular sales to first time buyers saw a rise.

Following the Brexit result, uncertainty from the first time buyers group was felt by only 28 per cent of NAEA agents, and 30 per cent of total house sales in June were made by this group – the highest number of sales since October.

“First time buyers are supported with some really attractive schemes from the government. It’s great to see that young persons are taking advantage of these and are feeling the benefits,” comments Mark Sandall, director of residential sales. “The new Housing Minister confirming his commitment to building new homes is also especially encouraging for those looking for their first home.”

One scheme in particular has been popular with first time buyers: the Help to Buy ISA – over 550,000 people have opened an ISA since it was launched in December 2015.

Help to buy ISA

The ISA gives account holders support in saving for a deposit for their first home. No tax is paid on the interest earned and the government contributes 25 per cent on top of the amount in the account when the holder decides to buy a home.

This means that if there is £10,000 in your ISA, the government will add a bonus of £2,500 when you come to buy – making a sum of £12,500 with any interest made up in the time it took to save also added. Most major banks and building societies offer the Help to Buy ISA, all with varying interest rates.

For more information about property available in Leicestershire that is suited to first time buyers, call the Andrew Granger Leicester office today on 0116 242 9922.