Conveyancing firm calls for more first-time buyer support as activity declines

Fewer first-time buyers got on the property ladder last year but there was an increase in people buying for business purposes, a regional conveyancing firm claims.

East Midlands-based Bird & Co has looked back on its own internal client data for 2022.

It found that 68% of its clients were first-time buyers in 2022, down from 71% in 2021.

Three quarters of people buying were intending to use the property as their main residence, compared with 42% in 2021, while there was a decline in people buying property for the use of holiday lets, HMO and lettings overall, the firm said.

Meanwhile, the number of people buying for business purposes has more than doubled, from 15% in 2021 to 33% in 2022.

The firm suggested more support may be needed for first-time buyers this year.

It said: “Further changes from the Government are needed in terms of schemes available to first-time buyers that do not just apply to new builds. 

“Our insider stats demonstrate that, so far, their current schemes are having no fundamental effect. 

“Second- and more -time buyers are still snapping up many properties and filling the market with more rental homes and business opportunities. This is boosting the competitive nature of the rental market.”

While it may seem that the government has little control over what happens globally, Bird & Co said, there could certainly be a lot more focus on making homes more affordable as well as the cost of living in general.

It added: “Sky high interest rates and soaring inflation makes saving and the idea of buying a home less possible for future buyers. 

“As ever, the 2023 property market needs a huge overhaul before we can tackle the home buying barriers for our young adults today.”

Daniel Chard, managing partner at Bird & Co, said: "It's clear that first-time buyers are struggling once more to begin their property investment journey. 

“The increase in investment for business purposes could serve some purpose to communities, either by creating commercial spaces for work or by providing more available properties to let. That said, more needs to be done by the government to support first-timers in the coming years, or things may continue to stagnate.

"We have also seen a decrease in enquiries for holiday lets, which could be down to the end of Covid restrictions this year, which saw many enjoying holidays abroad. 

“Meanwhile, buy-to-let and business opportunities have risen, suggesting 2022 was a good year for landlords."