A study done by Nerd Wallet found that with the 95% government back mortgage scheme as well as other government incentives like Help to Buy and Shared Ownership there are only 15% of working-age people who believe that the schemes could actually apply to them.
Here are some stats that might surprise you:
22% of young people (under 25 years old) believed the government’s scheme was relevant to them.
78% of working-age people feel that they do not have a good grasp of the full support available to help them get on the property ladder
17% of under 35s understood that first-time buyers may not need to pay stamp duty.
19% of respondents did not know that mortgage lenders can consider daily spending habits in mortgage applications.
An additional 23% said that they would trust mortgage information from unofficial online forums, such as Quora, Yahoo Answers or Reddit.
Are you surprised? To be honest, I was a little, but not entirely. Let me explain why. There’s just so much information out there, you have vague ads telling you that you too can buy a house but in the fine print there are rows and rows of restrictions of who the scheme can apply to and who it doesn’t. And let’s face it, they’re tired of being sold to. With all the noise in the market it’s time to simplify and educate.
So, what can you do to educate the market on the different schemes and in turn get more first-time buyers excited about property?
Create a simple eligibility checklist for each scheme
Reach out to the right individuals on platforms they understand. I.e. everyone’s favourite Social Media
Make it easy for them to reach out to you – set up webinars where everyone can ask questions
Now that there is more and more supply on the market, you can use the new government scheme to your advantage and help people find their home. To aid your deal process we can help at XChange by sourcing the properties your applicants are looking for. With over 800 partner agents, BTL investors and developers we can source a property for you that would work. Reach out to our team and we’ll get you set up and ready to go.