First time buyers are still struggling to get onto the property ladder in the UK. There are many factors working against them that are too hard to overcome such as saving for a deposit for one. A lot of first time buyers must look to family members, mainly parents, to have enough to put a deposit toward a new home.

Even with the deposit in hand, it can be difficult to find the right property. There are fewer and fewer starter homes coming onto the market. Some of the reasoning for that is that fewer homeowners in starter type homes are upgrading. They prefer to stay put rather than move home to a larger property. This pushes up asking prices as demand is greater than supply, and competition for first time buyer level homes makes it important to move fast to make a purchase.

Some first time buyers are pushed out of their deal even when they make one. New buyers will come in and offer a higher amount of money pushing the seller to withdraw their offer to sale to the first buyer. This process is being looked at by government and may bring about tighter contracts for the housing market.

Probably one of the newest and most impactful factors keeping first time home buyers from becoming homeowners is the increase in interest rates immerging in the lending market. More lenders are putting out mortgage deals without the low cheap rates seen months ago. There is still competition between lenders to get customers, but if across the board the majority are increasing their rates, then borrowers will see fewer historically level interest rate deals.

Hopeful first time buyers are keen to get into a new home in the holidays as it is usually a busy time of the year for property shopping, yet the struggle is still there and could be harder for them than in years past. Right now there are no new plans by government to help with a first time buyer scheme, but as the first time buyers become more absent in the housing market, there is likely to be a need.

Experts suggest that those shopping for a property to be patient. Look into special opportunities for first time buyers both with builders and with lenders. Brokers could offer benefits that direct lenders don’t, so consider working with one if you are looking to work with someone that can bring many lenders at once to the table.

The New Year will likely bring many changes in the first quarter in both the housing market and the lending market, but perhaps no time is better than the present to focus on one’s dreams to be a homeowner.