The next seaside property hotspot

Historically reliant on tourism, Bournemouth’s reputation is changing along with its demographics. No longer labelled as a sleepy town for senior residents, the town is now sought after by young professionals.

Two expanding universities and a host of financial headquarters have attracted a large number of former London employees to Bournemouth. Easy to travel to and from London if necessary, the town does not only attract young professionals but retired or self-employed individuals who may still need to take the infrequent trip up to London. Bournemouth airport also makes it easy for locals to travel with Ryan Air and Thomas Cook.

A sure sign that the seaside town is on the path to regeneration is the brand new leisure complex consisting of 13 restaurants, a 10-screen cinema and 175 parking spaces. Also, a pier with a zip line to the beach, vertical drop slide, a climbing wall and aerial assault course built to please the younger generation. Bournemouth is not short in amenities either, with plenty of shops, restaurants, bars and nightlife, the town is lively and budding with millennials.

Fortitudo currently has a multitude of developments available in and around Bournemouth. Statum in Wootton Mount proves to be popular for young professionals with its central location and modern interiors. The apartments are all available with Help to Buy, allowing first-time buyers to take advantage of the government-funded scheme.

To view Fortitudo’s developments visit www.fortitudoproperty.com.

Millennials reject the city and move to peaceful suburbs

With just 11% of millennials planning to take out a mortgage next year and most reliant on the bank of mum and dad, millennials are opting to live life outside of the city and purchase in quieter, more affordable locations. Currently, 26% of millennials are living at home with parents and 12% are living rent-free with mum, dad, friends or family when this generation is supposedly most likely to be using this time in their lives to live with friends or housemates.

Data has discovered that 64% of this generation believe that you get a better quality of life in the country and are believers in purchasing a property where there is a strong sense of community. There are now 20% more homes for sale in the capital due to this change in mindset. People have realised there are more meaningful things to life than earning money.

Fortitudo builds many developments in the suburbs Poole and Bournemouth, a peaceful location not only next to the seaside and the country but host to excellent transport links to London. Perfect if millennials wished to opt for rural life but still wanted to commute. All apartments can be bought in conjunction with Help to Buy, to take the pressure of having a large deposit. The government scheme will give you 20% of the purchase price, providing you have a 5% deposit.

To view Fortitudo’s developments visit www.fortitudoproperty.com.

Increase in seniors looking for homes

The number of people aged over 65 is set to increase by 20% in the next 8 years and it’s no surprise that seniors want to be in a central location with great transport links whilst close to friends and family!

Being old today does not have the same connotations as before, and rather than moving into care homes, seniors are thinking sensibly and are looking to downsize. Not only does a smaller property such as an apartment require less upkeep and allow more free time but if seniors were to purchase a new-build apartment with a fixed warranty, it takes the stress out of much-needed renovations.

Beyond downsizing, moving into an apartment can also prepare seniors for assisted living, an independent living facility, or even make room for a carer. Living in a block of apartments surrounded by others may also feel safer than being in a big home alone.

All of Fortitudo’s apartments are built in prime locations with convenient amenities nearby and plentiful travel connections. They also come with high specification interiors and a fixed ICW 10 year building warranty.

To view Fortitudo’s developments visit www.fortitudoproperty.com.

Single? It is possible to purchase alone!

Many millennial’s are coupling up in order to purchase their first property and are under the impression that they cannot do it alone.

A third of Brits believe that in order to get onto the property ladder they will need the added benefit of another person’s salary and are therefore coupling up with partners, friends or family members to fulfil their dream of owning a property. It’s also reasonable to consider that by doing this, they will reduce their monthly outgoings by half but getting onto the ladder may outweigh this benefit for some.

A Help to Buy equity loan can turn singletons lives around, without the waiting or excessive saving. When it comes to taking the plunge, women are less confident than men, with women waiting 5.31 years and men waiting 4.51 years. Buying a new development associated with the scheme is a simple application process and if accepted, the government will lend you 20% of the purchase price providing you also have a 5% deposit.

At Fortitudo, we offer Help to Buy on all of our developments. We pride ourselves on giving first-time buyers the opportunity to purchase luxury homes. If buyers are already renting it also makes it possible for them to get out of the renting rut, as a monthly mortgage is most probably cheaper than renting costs.

To view Fortitudo’s developments visit www.fortitudoproperty.com.

High renting costs halting career growth

The astronomical cost of renting in the UK is stopping millennial’s from relocating in order to develop their skills and find new jobs. They simply cannot afford to move to areas where they would be better paid and able to live a better quality of life.

Private rents have risen fastest in higher paying areas of the country, so youngsters are staying put in stable and satisfactory income jobs. Young people are often stereotyped as being quick-to-change within the job market, constantly moving around for new job opportunities however this has become less frequent. Although this is partly good news for the country, as employment gaps have fallen and citizens are able to get jobs locally, it also prohibits workers from personal growth and the ability to gain new skills. Firms are also now finding it hard to fill skilled roles.

At Fortitudo, we are making it possible for millennial’s to move to top locations with plenty of job opportunities by giving them the chance to use the governments Help to Buy scheme to purchase a luxury and modern development. Their monthly mortgage fee is most likely to be much less per month than renting costs and they can call a brand-new living space with excellent specification their own.

To view Fortitudo’s developments visit www.fortitudoproperty.com.

Bounce in property sales as people get tired or Brexit

The UK property market is maintaining performance and buyers have stopped putting their lives on hold despite Brexit uncertainty. People’s reasons for moving are still as relevant now as they ever were and buyers in the market still need to up-size, downsize, move locations, move into school catchments and so on. We are seeing that they are now returning to the marketplace as they realise that they can’t keep putting life on hold.

Buyers had shown previous interest on properties but had refrained from committing, they have now started to secure sales. The uplift in people moving homes is over a broad range of price points and property types. Government schemes, such as the Help To Buy equity loan, have helped support the increase in first-time buyer numbers.

Families, often second-steppers are outgrowing their first property and cannot postpone a move. Rightmove said family homes with three and four bedrooms are in high demand and are currently holding their value particularly well. We realise this at Fortitudo and have started construction on 8 family homes each with three and four-bedrooms in Kingsworthy, the popular suburb of Winchester.

It’s one of the most sensitive markets that we’ve seen for years, buyers are understandably looking for value and extra quality.

All of Fortitudo’s developments offer a high specification and cleverly designed space in sought after locations. To view our latest sites, click here.

Update: Help to buy Scheme latest sales results

The Government has just released the results of 2018 for its Help to Buy Scheme Since April 2013, some 210,964properties were bought with an equity loan. This means that there was a equivalent of 143 homes sold per day, that’s 1000 properties selling every week!

Help to Buy has now been operating over a six year period, first time buyers represent 81% of those buyers who have been helped onto the housing ladder by the Help to Buy Equity scheme. The Government scheme accounts for a total loan value of £11.7 billion since being set up by the government in April 2013. The overall value of properties sold through the initiative stands at a massive £54.48 billion and rising! 

London’s lead the equity loan value rising by 20% since 2016. Under the scheme the mean equity loan was £55,498 and the mean purchase price of a property bought was £258,223. From February 2016, in London the equity loan rose from 20% to 40%, which is great news for all of you first time buyers. From February 2016 until the end of 2018, there was a 12,511 property transactions in London and 10,635 were made with an equity loan higher than 20%. During the first quarter of 2019, HMRC transaction statistics potentially suggested that Help to Buy fuelled sales are still performing consistently, continuing the trend of the last 12 months. 

Did you know, that one in seven first time buyers benefits from the Help to Buy scheme. The Government scheme was highly successful in 2018, and will. Continue to stimulate the bottom of the housing ladder and indirectly support the whole of the UK’s property sector throughout the year. It is likely that the scheme will remain invaluable in supporting home buyers over the remining years of the scheme and will play a crucial role in helping to keep the housing market on an even page, during a period of uncertainty as a result of Brexit. 

Unfortunately the Government has made it clear that the Help to Buy will come to an end in 2023 and that it is looking to lenders and developers to come up with alternative products for first time buyers and second movers. It is vital that the Government and industry works together to ensure these buyers remain supported, it is likely that we could see private schemes coming to the market to help the market. There is good opportunity to buy now, renters should not hold back, as you can put down a deposit as little as 5%. To see what developments we have to offer, associated with Help to Buy, please visit our website (Hyperlink). 

Everything you need to know about the first time buyers ‘market

First time buyers make up the biggest part of the property market in the UK for first time in 23 years, new research has found. Overall, the number of first time buyers reached 372,000 in 2018, accounting for the majority of home purchases for the first time since 1995, according to the latest Halifax first time buyer review. This is a rise of 2% in the last 12 months, continuing an upward trend over the last seven years. Although growth in 2018 was at a slower rate than 2017 when it was 7.6% and 2016 when it was 9%, first time buyers overall have increased by 92% from an all-time low of 192,300 in 2008.

First time buyers now account for just over 50% of all house purchases with a mortgage, an increase from 38% a decade ago, the research also shows. The average price paid for a typical first home has gone up by 39%, from £153,030 in 2008, to £212,473 in 2018, and the average deposit has increased by 57% from £21,133 to £33,252 over the same period.

Meanwhile, the average deposit put down by a first time buyer was 14% of the purchase price in 2008 at £21,366, jumping to 20% in 2009, the highest over the last decade. In 2018 the average deposit has come down to 15% of the purchase price, although the average property price has continued to increase. First time buyers are putting down an average deposit of £32,841, with those  in London putting down a higher £110,656, while those in Wales are paying the lowest average deposit of £16,449.

Terraced houses, closely followed by semi-detached properties have continued to be the first-time buyer’s home of choice over the past decade, making up 67% of mortgages for first homes in 2018. The average age of a first-time buyer in 2018 has remained at 31, two years older than a decade ago. In London it has grown from 31 to 33 since 2008, the oldest in the UK. The biggest increase in age was in Northern Ireland, up by three years from 28 to 31. New buyers coming on to the ladder are vital for the overall wellbeing of the UK housing market, and the continued growth in first time buyers shows healthy movement in this important area, despite a shortage of homes and the ongoing challenge of raising a deposit.

Last year was the first year that first time buyers accounted for the majority of the market since 1995, which shows that the factors reducing some of the associated costs, such as continued low mortgage rates and stamp duty, are supporting the increasing number of people taking their first step on to the property ladder. On a regional basis, while the numbers of first time buyers have increased nationally, the number of first time buyers in Scotland and Wales has fallen over the last year. London and the South East have seen the fastest rise in average price paid and deposit put down by first time buyers over the last five years. However, the average price paid in London grew only by 1.4% and the deposit fell by 1.4% over the last 12 months. This is in contrast to the 50% growth in first time buyer prices in London in the five years to 2018, compared to growth of 36% nationally.

At Fortitudo we strive in making housing assessable for everyone and create property ownership possible for first-time buyers, the majority of our developments are associated with governments schemes like Help-to-Buy. We believe in giving everyone a chance of owning their dream home.

First time buyers – how much of a deposit do you actually need to get onto the property ladder?

The average first-time buyer deposit was almost £4000 lower in the last financial year, according to a new government housing survey. The question is… could you have saved enough deposit to buy a property without even realising it?

The annual England housing survey revealed the typical deposit paid by first-time buyer in 2017/18 was £44,632, down from £48,591 the year before. This means its fallen by £3,956 or 8.14%. Fortitudo have taken a closer look at how first-time buyers have achieve their home ownership dreams and offers advice of how you can too get yourselves onto the property ladder.

Are things getting better for first-time buyers?

It is becoming increasingly more accessible to first time buyers to get onto the property ladder in the UK. There and now many different government schemes helping thousands to follow their dream of owning their own home. These schemes include Help to Buy equity loan, Shared Ownership and Help to Buy ISA. Furthering this, mortgage rates are falling and mortgage lender is becoming higher, with Banks including Lloyds lending 100% of the property purchase price.

How do first-time buyers buy their home?

More than half (56%) of first-time buyers bought their home jointly with a partner or spouse while 43% bought alone, according to a recent survey. Almost all first-time buyers in England (99%) had a repayment mortgage. Nearly half 46% had a mortgage of 30 years or more, 50% had a deal lasting 20-29 years, while a small proportion 3% had a 1-19 year mortgage. Borrowing for longer can help improve your mortgage chances. By spreading repayments beyond traditional 25 year period you can lower your monthly repayments which can help you meet strict affordability requirements.

First-time buyer have never had it so good

Brexit uncertainty Is making it easier for first-time buyers to get a good deal on a home. House prices have stagnated in some parts of the country, especially in London. The fewer number of buyers around has forced some sellers to accept offers below asking price. As well as taking advantage of the current ‘buyers’ market, first-time buyers can also benefit from historically low interest rates on their mortgage. This has led to monthly mortgage repayments being lower than rent in most of the UK.

Are you ready to buy your first home?

If you’ve started saving for a home and are itching to take that first step onto the property ladder make sure you check out our developments and secure your new home today with a reservation fee for as little £500 for Help to Buy users and £1000 for non-Help to Buy. To see what we have becoming available in 2019 head over to our website.

5 top tips for buying a property in 2019

If you’ve set your sights on buying the house of your dreams in 2019, you’ll be pleased to hear that current buyers’ market conditions look set to continue for at least another six months. That doesn’t mean you should just sit back and wait for the perfect opportunity to come to you though.

1. Plan for a deposit, even if you don’t have to

According to Rawson Finance, lenders are granting 100% loans in certain circumstances, but smart buyers are putting down deposits anyway. Putting down a deposit is traditionally around 10% of the purchase price, this helps to minimise the risk your bank is taking by granting you a loan. This can have a significant effect not only on their likelihood of granting you finance, but also on the interest rate they’re willing to offer you. Buyers with deposits have been known to qualify for interest rates as much as 2.5% lower than those asking for 100% bonds. That can literally save you hundreds of pounds over the course of a 20 year loan, and turn your investment into a real winner. Once your savings pot is up and running, consider using an online affordability calculator to get an idea of how much you’ll be able to borrow based on your income and outgoings. Although this should be used as a guide, the information will help you focus on properties that are within your range.

2. Don’t forget about the prequalification’s

Before getting a mortgage, you will be credit checked, so now is the time to check your own credit report and ensure all information it contains is accurate and up-to-date. A good credit score can be the deciding factor in not only getting approved for the mortgage, but also the rate you are offered. Plan now to start paying down any outstanding debts, be sure not to miss any agreed payments on utility bills or mobile phone bills, and try to make more than the minimum repayment in the six months before you mortgage application. Competition for specific properties can be fierce at any time, particularly within the popular neighbourhoods and price bands. A good property, for a fair price, will often attract numerous competing offers, regardless of what the broader market is doing. The last thing you want is to find that perfect home and then lose out to another buyer simply because they took the time to get prequalified, and you didn’t.

3. Research affordability hot spots

You may have your heart set on a popular area, but so will many other buyers. On average, new buyers will end up moving 5.2 miles away from where they originally intended. Consider widening the net to make your budget go further, so you can but more space for your money. You could try searching in up and coming areas, which may become future property hotspots, rather than places where property prices have already increased a lot.

4. Play the stamp duty game

Those taking their first steps onto the property ladder have saved £2,300 on average, while those buying in London have seen almost double the discount with a typical saving £4,300. If first time buyers in England keep the costs of property below £300,000, there is no Stamp duty payable. And those buying a starter pad worth between £300,000 and £500,000 get a reduced bill, paying 5% on the remainder above the tax-free amount.

5. Help to Buy

Another popular method for first time buyers getting on the property ladder, is the Governments Help to Buy loan scheme, which will run until 2023. It’s available to homeowners looking to move as well as first time buyers, but only for new build homes. It gives an equity loan that can be used towards buying a property and means new buyers in England may need only 5% per cent deposit to get a good mortgage. With Help to Buy, even if you only have 5% per cent saved, you can get a well-priced mortgage because the Government is effectively guaranteeing the rest of the deposit. There are some limits on the price of the property you can buy and the loan must be used to buy your own home only, not by-to-let. Furthering this you have to get a repayment mortgage not an interest only mortgage.