Demand from first time buyers is rising in Hackney as the rental crisis leaves many taking the plunge earlier than planned.
With letting agents reporting between 50 and 100 enquiries per property listed and many people unable to find a suitable rental home, more and more are turning to the bank of mum and dad and stepping on to the property ladder.
Vicky Bibiris, Managing Director of Location Location estate agency in Stoke Newington, said: “The cost of borrowing has been steadily increasing; the Bank of England base rate now is at 4% so in some respects its surprising to see so much demand from first time buyers. But the alternative is pretty bleak.
“In Hackney the number of rental properties has dropped by around 55% in the past 18 months as changes to tax exemptions and new requirements for maintenance and property licensing leave many landlords selling up. There simply aren’t enough rental properties to meet demand and, as a result, the cost of renting has also increased.
“We’re increasingly hearing from first time buyers who are buying because they can’t find a suitable place to rent – mindful of just how tough things have become, their parents are stumping up the deposits to help them.”
While property prices have levelled off lately, demand remains high and, at Location Location homes are on average selling for 5.6% above the asking price.
Vicky added: “Some would-be buyers are put off by rising interest rates and are waiting and attempting to call the market – in London that rarely pays off. Property prices tend to double here every 10 years so people should just buy when they need to buy! By September I expect the Base Rate will have come back down to around 3%.”
Those still looking to rent are advised to register their details with as many estate agents as possible and keep in regular contact with them. Because of the high demand and the huge number of calls each rental property generates, many rental homes aren’t advertised at all – registered applicants are being offered first dibs.
