The spring is here, the sun is out, and the lockdown restrictions are easing. Perhaps you are itching for a change of scenery or need more space after a year at home, but you are wondering if it’s a good time to be a buyer. First thing first, it is crucial to understand the current Scottish property market. Along with the upcoming changes, the market has also drastically changed since before Covid-19. Let’s have a look together at the Scottish property market.
Get your dream home sooner with a lower deposit
Good news first, you can get your dream home with a lower deposit from next month.
March marked the end of the temporary change to the residential land and buildings transaction tax (LBTT) – the Scottish equivalent of stamp duty – but also marked the return of the 95% mortgage guarantee scheme also known as the 5% deposit mortgage scheme. This initiative aims to help turn “generation rent into generation buy” by allowing them to get on the property ladder, as expressed by Chancellor Rishi Sunak. This new scheme is meant to enable lenders – banks to put it simply – to offer more deals to homebuyers with a low deposit or limited equity. In other words, the government offers to take on some of the risks of low deposit loans, meaning lenders will have some protection from potential losses. The mortgage guarantee scheme will be available to any buyer – current or previous homeowners or first-time buyers – that are looking for a property for up to £600,000.
The scheme will open next month and run until December 2022. Additionally, some of the biggest lenders have already brought back 95% mortgages with more expected to follow soon.
House prices are expected to grow
This past year was challenging, but the property market seems to be less impacted than other sectors. As a matter of fact, the Scottish property market is showing no signs of slowing down. The series of lockdowns have led many people to seek more indoors and outdoors space, leading the Scottish property market to have outperformed uncertainty and grew by 3.2% in 2020. Similarly, house prices are expected to grow by 3% in 2021, according to property group Savills.
Besides the locals, Scotland also attracts buyers relocating from other regions due to affordability and access to green spaces. This month, property website Rightmove revealed that Glasgow was in the top five most searched-for places to live in the UK for the second year in a row.
Are you following?
The multiple rule changes can be daunting at first and the market scary but there is always a bargain in there! A mortgage advisor can save you time and money by helping you navigating and understanding the housing market. At GPD Mortgage Solutions, we have plenty of experience when it comes to finding the right deals for you. If you need any advice, don’t hesitate to get in touch today.