Liverpool city region conveyancing lawyer, Stephanie Williams of Gregory Abrams Davidson, claims the number of local first-time buyers is growing amid a small improvement in housing affordability. Tony McDonough reports
House prices in the UK are continuing to rise presenting growing affordability challenges for those looking to buy and rent.
Major mortgage lender Halifax reported average UK house price jumped to a new record high of £299,862 in October after rising by £1,647 month-on-month.
However, according to Amanda Bryden, head of mortgages at Halifax: “With house prices rising more slowly than incomes for almost three years now, we expect the trend of gradually improving affordability to continue.”
This analysis is backed by Stephanie Williams, a conveyancing solicitor at Liverpool city region law firm, Gregory Abrams Davidson (GAD). Stephanie told LBN that while affordability remains a major barrier, there are signs of subtle changes.
“There has been a noticeable increase in first-time buyer activity across Merseyside with many areas being seen as affordable and offering entry points for buyers looking to get onto the property ladder, sellers looking to downsize or investment property opportunities,” said Stephanie.
“Sellers are increasingly favouring buyers who are ready to move quickly such as those who are chain free or first-time buyers. For areas such as Birkenhead there is also an increase in property demand due to ongoing investment and regeneration projects.”
Stephanie added she had also observed that the supply of houses coming onto the market at present appears to be higher than buyer demand. Increased supply not only offers choice but may also lead to prices cooling, although not quite falling.
“House prices in Liverpool and the wider Merseyside area have continued on a modest upward trend but there are definitely significant regional differences,” explained Stephanie.
“While the North East/ North West of England and Wales are appearing stronger, London and the South East have seen more subdued momentum.
“There is a lot of speculation about the upcoming autumn budget in November this year and potential property tax changes that has caused a slowdown more noticeable in the higher value areas, which correlates.”
During COVID there was an observable flight from urban centres to the suburbs and, five years on from the pandemic, Stephanie says this trend has continued.
She said: “There is growing demand for homes in the more suburban and semi-rural areas with buyers being seen to be prioritising outdoor space, parking, and proximity to schools or transport links.
“There is also still demand for quality rental properties and the Liverpool rental market still remains competitive due to good yield on investment in areas like Edge Hill and Kensington in the city centre, and student areas predominantly in the south of the city.”
Another frustration for homebuyers, according to Stephanie, is long transaction times for buying a residential property in the UK, compared to other countries.
Figures show the average transaction time for buying a home in the UK is 179 days – that is almost six months. In the US the average is just 53 days, Canada 90 days and Australia 95 days.
She says factors feeding the delays include short-staffed local authorities taking time to return search results and new legislation such as the Building Safety Act, as well as complex rules around stamp duty.
“Most mortgage offers are valid for six months and extended delays can mean the offer expires before completion,” said Stephanie.
“The longer the process takes the greater the chance that a party withdraws. In England and Wales, until exchange of contracts, any party can pull out without penalty which results in wasted legal fees, survey costs and emotional stress on clients.”
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GAD, which has now been in business for 45 years, is looking to increase its market share in the Merseyside conveyancing market.
Stephanie added: “We have a large property team with a wealth of knowledge and our firm’s clients know what it means to have advice not only technically sound but combined with professional insight and practical guidance so they can make informed decisions.”