Overcoming the hurdles to get on the first rung

David Marshall itemises a checklist for first-time buyers

Being handed the keys to your first home still is, for many, a huge life milestone.

But recent years have seen many people struggle to get a foothold in the market, especially in Scotland’s prime areas.

With high demand pushing premiums up, and high rents making it difficult to save, first-time buyers have been outbid, often by much deeperpocketed investors.

Many must feel like everything is stacked against them.

But there are signs that the situation is improving, with recent data suggesting that firsttime buyers now make up 50 per cent of house purchases in Scotland.

First-time buyers have been helped by changes to property tax in Scotland over the last year. Firstly, the threshold at which first-time buyers start to pay Land and Buildings Transaction Tax was increased from £145,000 to £175,000. The Additional Dwelling Supplement was also increased from 3 to 4 per cent, which dampened demand from investors.

Yet despite this, there will still be many unsure as to whether they can make the move. So, what can they do to put themselves in the best position to secure a home?

First, buyers must sort out the finances. This includes budgeting for the up-front costs of buying and ongoing monthly costs. Without previous experience it can be easy to forget legal fees, LBTT and home insurance.

Often the biggest obstacle financially for first-time buyers is something we know well from our own experiences in the market. Lenders will only be willing to lend up to the Home Report valuation of a property, so it may mean having to consider a lower value home.

Secondly, a mortgage agreement in principle is important before making any offers.

This will give sellers confidence in any offers that your solicitor submits on your behalf.

It can be well worth finding a broker to help.

Then we get to the importance of a good wish list. Everyone has their own idea of what makes the ideal home. The key is to decide which of these factors are essential and which you would be willing to compromise if necessary.

It’s easy to fall in love with a property early in your search, but it’s important not to become fixated on one home as it leads to rash decisions and overstretched budgets. Plus, our own data shows that the number of homes coming to the market has increased significantly in the last year so there are options out there.

It pays to keep an eye out for properties that have been on the market a bit longer. Properties attract the most attention when they first go live, but sellers can start to moderate their expectations after their home has been on the market a while.

It’s also worth looking at properties that are marketed at a fixed price, or considering a new-build property as you won’t have to worry about getting caught in a bidding war, and some developers have incentives in place.

Government schemes, such as Help to Buy, may also be an option for firsttime buyers.

Finally, it’s best to choose a solicitor early in the buying process. A good solicitor estate agent will advise on the market and recent sales, and help you decide how much to offer as well as submit offers on your behalf.