Should developers aim to provide more to First-time Buyers?
Yes, I think they should. Let's look at some of the benefits, concerns and ways developers can begin thinking of providing to first-time buyers.
Potential benefits include:
- Increasing the size of your potential pool of buyers.
- Improving your product diversity.
- Higher rates of owner-occupiers.
- Lack of affordability.
- Slower to transact.
- Lower margins.
How can developers provide more of these homes:
- Building more affordable homes. This can be achieved through less flamboyant specifications, still delivering quality but without the "luxury" pricing. Building smaller properties.
- Reducing costs by building more efficiently.
- Bringing their projects in line with the governments Help to Buy schemes.
I do believe that wherever possible and feasible, developers should look to provide homes suitable for first-time buyers. First-time buyers made up a significant share of buyers in the UK; 365,000 mortgages were issued to first-time buyers in 2017.
Do you feel that developers should try to deliver more homes to first-time buyers?