The UK property market is currently experiencing a notable shift, particularly at the point of entry to the property ladder.
Recent stamp duty changes have significantly impacted first-time buyer (FTB) activity, leading to a substantial year-on-year drop in offers.
We hosted a webinar to explore the impact of these changes and invited a panel of industry experts to join in the discussion.
Meet the panel
Ben Madden, Director at Fine & Country
Fine & Country have been an agency for 20 years and Ben’s previous business was regarded as a first-time buyer specialist. He has years of hands-on experience working with the entry point of the market.
Ian Macbeth, Managing Director at Avocado Property
Ian has over 20 years of experience in the self-employed agency market on his belt. Avocado Property are leaders in the market with a list of award wins and unique approaches to disrupt the industry.
Hannah Nicholson, Founder & CEO at Snappily
With a strong background in law, Hannah set up Snappily to digitise the compliance process in a way that suits a modern audience. Snappily allows sellers to quickly answer questions about their home on the go via their slick app.
Snappily is integrated with Alto and has been a partner for over 2 years.
James Dolan, Head of Customer Solutions & Education at Alto
Our own James Dolan leads the customer solutions team, where they are all about making sure that our agents are educated, trained and using the platform to the best of their ability.
The key stats from Alto
Keen to review the impact, Alto analysed activity across 6000 agents and sent out a survey to over 100 agents.
The numbers are striking: first-time buyer offers have plummeted year-on-year following April’s stamp duty adjustments.
Our research revealed:
- FTB offers are down 55%
- 41% have seen a drop in new FTB registrations
- 47% say buyers are more cautious
- 18% report a fall in FTB viewings
- 1 in 5 say buyers are viewing 6+ properties before offering
This significant decline has prompted crucial questions: Is this a temporary blip, or the beginning of a generational shift in how young people purchase homes? And more so, what does this mean for estate agents?
What have the agents noticed?
“Most agents had a phenomenal March in terms of completions and bankings, and then you would have found in April that there’s a little bit of a lull off the back of that. Every time there is a change in the stamp duty threshold, you do inevitably see that.” – Ian Macbeth, Managing Director at Avocado Property
Ian went on to discuss the real influence on activity being based on affordability. How much buyers can borrow based on their earnings has been moving in a positive direction and this combined with the rental market being so expensive, means buyers are out there.
“Stamp duty holidays don’t increase the volume of sales, they just move the sales, so they bring them forward. If you look at on average, we’ve just brought forward the sales that would have completed in April and May into Q1, and so naturally we see a little bit of a dip as we enter Q2.” – Ben Madden, Director at Fine & Country
Ben raised a strong point around consumer confidence having an impact and reiterated a previous point from Ian on the importance of getting the price right. This opened an interesting discussion into how agents need to ensure they are having honest conversations and educating sellers about pricing.
Helping agents through technology
Hannah Nicholson explained how Snappily are leveraging technology to streamline processes, reduce fall-throughs, and ease the burden on agents. They’ve noticed agents are increasingly required to provide more hands-on support and their goal is to alleviate that pressure.
“It’s a bit of a generational shift…moving to digital apps and using software like Alto or an integration.“ – Hannah Nicholson, Founder & CEO at Snappily
James Dolan explored the importance of keeping up to date with the market rates and utilising technology spot early trends. He also explored how this will help agents to educate their clients and get properties sold.
“Alto is all about real time visibility. It’s about getting those insights, those trends, being able to make those better decisions through data” – James Dolan, Head of Customer Solutions & Education at Alto
Watch on demand
The panel discussion continued exploring the figures and how agents should react, as well as sharing actionable tips for success in the current market.
Further topics included:
- The difference in approach to buying compared to the last 10 years
- The impact on the premium end of the market
- How agents can support first-time buyers
- The future of policy changes and government incentives
The overall sentiment is one of cautious optimism. While the market has adjusted, the underlying demand from buyers remains strong. By embracing honesty, using technology, and understanding the ever-changing needs of the modern first-time buyer, estate agents can continue to succeed.
Interested in watching the full webinar? Simply fill out the form below.
