Living in Birmingham is highly desirable. It offers a plethora of job opportunities, such as positions in the thriving financial sector, the booming tech industry, and the ever-expanding healthcare field. With plans to build a ‘Sports Quarter’ in the city recently announced, the investment potential is also significant. Unsurprisingly, many new homebuyers are considering moving to Birmingham.
How easy is it to buy a house in Birmingham if you’re a first-time homebuyer? We’ll explain everything you need to know about Birmingham and its property market for first-time buyers.
As cash house buyers who have been involved in buying property in the city for many years – from helping people to sell flats fast to purchasing properties with problem tenants – we are local experts in Birmingham property. Call us today for a free cash offer on your property in 24 hours if you want to sell.
What Is the First-Time Buyer Scheme in Birmingham?
First-time buyers in Birmingham, like you, have a unique opportunity to benefit from the government-run ‘First Homes’ scheme. This scheme offers a substantial 30-50% discount on the market price of a house, making homeownership more affordable.
The following criteria must be met to enter the first-time buyer scheme:
- The house must be a new build or purchased from somebody who has already benefited from the ‘First Homes’ scheme when they purchased that house.
- Be a first-time buyer.
- The property must be the ‘main’ property for the buyer.
- The buyer should not earn over £80,000 pre-tax per year. If two people are purchasing, this will be joint income.
- Can obtain a mortgage for at least half the property’s price.
Birmingham Council administers the First Homes scheme in the city and decides who may be eligible. If you already live in Birmingham or have a lower income, you have a better chance of being approved.
Is Now a Good Time to Buy a House in Birmingham?
Birmingham is a very in-demand city, which means property prices here reflect that. They’ll be much higher than other places in the surrounding area but significantly cheaper than London.
Many people increasingly consider Birmingham a viable alternative to London, which is too expensive for most of the population. In addition to more affordable property prices, Birmingham offers a high quality of life, a thriving job market, and a vibrant cultural scene, making it an attractive place to live and invest in.
A growing property market
Between 2023 and 2027, Birmingham’s property market is projected to be the second fastest-growing in the United Kingdom, with an expected rise of 19.2%. This exciting growth potential makes now an opportune time to consider purchasing a property in Birmingham.
This means that if you are considering purchasing a property in Birmingham, now may be the best time to act. Property prices in the city won’t be getting any cheaper, and the high demand for property means that the sooner you start your property search, the easier it will be to find the right deal and the ideal property for your needs.
You can also benefit from the fact that many new builds are going up in Birmingham right now. This means that if you’re a first-time buyer, you’ll likely be able to take advantage of the First Home scheme, making it cheaper than it has been to buy a property here.
Is It Hard for First-Time Buyers to Buy a House?
We’re currently in a challenging economic period where mortgage lenders are exercising more caution in their lending practices. This may make it slightly more difficult for those with lower incomes to secure a mortgage at a decent rate.
Additionally, the rates on offer are high, making repayments more expensive than a few years ago. However, despite these challenges, there are still opportunities for first-time buyers, especially if they can take advantage of schemes like the ‘First Homes’ scheme.
Birmingham is a large city
Remember – Birmingham is a large city with an average property price of £218,223 rising; purchasing a home can be more challenging if you’re on a lower income.
Despite the challenges, first-time home buyers have a viable route to the market through the First Home scheme. Birmingham, being a large city, sees a steady influx of properties listed daily, including one-bedroom flats and two-bedroom houses.
This abundance of options should instil confidence that finding a home that suits your needs is within reach, especially if you’re open to exploring all areas, not just the popular ones.
If you want some hints and tips on where to look, we’ve compiled a guide for first-time homebuyers, which is essential for anyone looking to make a move.
How Much Deposit Do I Need to Buy a House in Birmingham?
While a 5% deposit is required to obtain a mortgage in the UK, this is rarely offered to first-time homebuyers. Most people expect to pay a 15% deposit, which means that, for an average property price, a buyer will need to have around £30,000 in cash before they can obtain a mortgage.
Sell Your Property Quickly in Birmingham
Want to sell your property fast in Birmingham and cash in on the demand for housing? Contact us at ‘We Buy Any Home ‘. We can offer a cash offer for your home within minutes, helping you sell your property in as little as 7 days. Our service is a fast and straightforward way to sell your home, which can be beneficial if you need to sell quickly for various reasons. This may give you much-needed funds to upgrade your property in Birmingham, making it easier to find the best deals in this booming market.
