Some people used to say, not so long ago, that first-time buyers (FTB) were the forgotten element of the UK housing market.

FTBs were ‘briefed’ against relentlessly and, to mix one’s metaphors, snookered continually as a result of a market that favoured existing homeowners and landlords.

Recent governments have tried to overturn this. First-timers have undoubtedly been placed front and centre, with schemes such as Help to Buy (HTB) designed to assist them onto the ladder, plus stamp duty holidays and the like.

There is a sense of urgency around our market

The problem, however, wasn’t so much about the need for this type of support but the number-one issue confronting modern-day FTBs: how to save for the substantial deposit required to buy a property in an environment of rising house prices.

This situation hasn’t really changed and, even with products like the Help to Buy Isa, it is still a difficult obstacle to overcome, especially in this house-price environment.

Motivating factor

The good news is that, on the face of it, it doesn’t appear to have stopped people buying. According to the Halifax, 400,000 purchasers got onto the ladder last year, compared to 300,000 in 2020. That may have a lot to do with a sense of urgency around our market.

Increasing the number of FTBs may be a slow burn but advisers will find themselves more in demand from this borrower demographic

The fact is, when you see house prices running at annual inflation rates of over 11% — according to the latest Nationwide index — you are likely to become motivated to try and buy sooner rather than later, or fear it will simply become an ambition that continually moves further away.

In that regard, the statistics appear to speak for themselves. Nationwide says an average-priced property now costs £255,556. A year ago, it was just shy of £230,000. In other words, it’s effectively £25,000 more to buy just 12 months on.

Over-demand

Now, no one is suggesting that house prices will definitely continue with double-digit growth levels. But there’s no denying demand far outweighs supply and, with mortgages relatively plentiful, there will remain a real focus on buying now rather than later.

In a landscape where there are likely to be multiple routes to homeownership, advisers have an opportunity to take their clients through this

And, while being priced out of the market continues to be a significant issue, we have seen the return of 95% loan-to-value mortgages and various lenders are running FTB schemes of their own. In addition, although the HTB scheme is due to finish next year, there appears to be a growing move towards the industry supplying solutions itself rather than relying on the government.

Advice is crucial

Increasing the number of FTBs may be a slow burn, but advisers will find themselves more in demand from this borrower demographic. The need for advice here is crucial, and not just on the mortgage and finance in general.

In a landscape where there are likely to be multiple routes to homeownership, advisers have an opportunity to take their clients through this, and also other parts of the process; particularly conveyancing, where there tends to be very little knowledge about which firm to appoint and how to get the best service.

There will remain a focus on buying now rather than later

Finally, advisers won’t need me to tell them the overwhelming benefits that can be secured for a business by providing an excellent service to those at the start of their homeowning journey.

A client for life could be there for you and that certainly seems like something worth pursuing, even if the passage towards a first home may not be smooth.

Mark Snape is chief executive of Broker Conveyancing