First-Time Buyer Boost? Opportunities in Scotland Following Interest Rate Decision

June has been a positive month for first-time buyers in Scotland, with the Bank of England’s latest base rate decision coinciding with the Scottish Government’s announcement that the First Homes Fund is set to return after a 4-year hiatus.

The decision to maintain the base interest rate follows this week’s announcement that the rate of inflation is set to remain at 2.8%. Prior to this, experts feared that conflict in the Middle East and rising fuel prices would lead to an inflation hike.

Standing fast at 3.75%, the Bank of England’s base rate of interest will influence the rate charged by lenders on mortgage repayments to those looking to get on the property ladder. 

Property market stability for first-time buyers?

Shawn Wood, head of conveyancing at Watermans, says that the impending return of the Scottish Government’s shared equity scheme, alongside the maintained interest rate, will be the perfect storm for buyers who are on the cusp of offering on their first home.

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Photograph of Head of Conveyancing at Watermans, Shawn Wood, who is chatting on his mobile to a client at a table in a coffee shop. Shawn has a mug of coffee in one hand, and there is a branded Watermans notebook on the table. Shawn is wearing a green quarter-zip jumper over a white t-shirt.

Shawn said

“The decision to maintain the base rate alongside the reintroduction of the First Homes Fund provides a welcome degree of certainty for first-time buyers who have spent months navigating a challenging market. Stability is so important when people are making one of the biggest financial commitments of their lives. Now, we have this."

First homes fund to strengthen buyer confidence

Shawn continued: “The timing is particularly significant given the imminent return of the Scottish Government’s shared equity scheme. For many aspiring homeowners, raising a deposit remains the single biggest barrier to getting on the property ladder. The combination of stable mortgage rates and additional support through the scheme could give buyers who have been sitting on the fence the confidence and financial boost needed to make an offer.

“We are unlikely to see a sudden surge in activity overnight. However, we do expect renewed interest from first-time buyers who were close to proceeding but needed either greater certainty around mortgage costs or extra assistance with affordability. For those buyers, the coming weeks could present a genuine window of opportunity. My advice is to act quickly as we will likely see greater competition for properties in the coming months”.

Getting started as a first-time buyer

The biggest hurdle when buying your first property can be knowing where to begin! Our advice would be to put yourself in the best position possible as soon as possible and speak to a solicitor who has experience of working with first-time buyers in Scotland. At Watermans, our team provide straightforward legal advice so that you know where you stand from the very beginning of the process. To speak about buying your first home, contact our team today.

Get in touch with us

Everything we do at Watermans is about getting you the resolution you need and making that process straightforward. Start the process by sending us your details below or calling us on 0131 555 7055

Our property expert

“My clients would describe me as being approachable, down to earth and easy to get on with. This allows me to build relationships with my clients and provide straightforward legal advice without all the jargon.”

Shawn Wood, Head of Conveyancing

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