It appears that government plans will shake up the property market. First time buyers have been all but locked out by the need to raise large deposits. Now this is set to change with government backed schemes to allow first-time buyers to get 95% mortgages and get on the housing ladder. Many younger people on furlough have been able to make significant savings during lockdown. There will therefore likely be a pent-up demand.
This could have a dramatic effect on cities like Peterborough. At the moment it seems that the bottom end of the property market consists largely of buy to let owners. Many such have been building up a portfolio and are vulnerable to a fall in rentals. The demand for buy to let properties has been so great that it seems property prices at the bottom of the market may have been artificially high. This could be a double whammy as Buy to Let Landlords start to ditch their properties. Good news though potentially for first time buyers. Seldom do such developments take precisely the course anticipated so it will be interesting to see what happens.
In the past government schemes have come with a lot of red tape and practical issues which can add to the expense and delay. It will be interesting to see whether the scheme hampers the conveyancing process. Also the stamp duty holiday is about to end and again this will add to the expense. Nevertheless, there really is a prospect of “Generation Buy” replacing “Generation Rent”!