First time house buyers and Coronavirus COVID-19

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The Coronavirus pandemic has changed many things, including the process of buying a property in Scotland. If you’re a first time buyer, you might wonder how these changes will affect you.

In this article, we breakdown the key changes to the home buying process. And for more information on buying your first home in Scotland, check out our first time buyer guide.

first time buyer covid-19 what you need to know

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Is it a good time to buy my first house or flat?

How has Coronavirus COVID-19 affected house prices?

How has the Coronavirus pandemic affected mortgage deposits?

How has COVID-19 changed Land and Buildings Transaction Tax?

Has Coronavirus affected house viewings?

Has Coronavirus changed the process of moving to a new house?

First-time buyer advice on Coronavirus and the impact on the property market

Is it a good time to buy my first house or flat?

This is likely a question you will be asking yourself and, unfortunately, there is no straightforward answer. Owning a home comes with lots of benefits but it is also a big financial commitment. You should do your research and make sure you are in the right position to take this on.

The UK Government’s 95% mortgage guarantee scheme has helped to bring more 5% deposit mortgages back to market. This may make it easier for you to get a mortgage if you have a smaller deposit saved up.

However, there is high demand for property, meaning homes are frequently sold for over their Home Report valuation. This means you might need to save more than expected to get your ideal first property.

How has Coronavirus COVID-19 affected house prices?

As a first time buyer, you are likely wondering how the pandemic has affected house prices. Our March 2021 House Price Report showed that the average selling price in Edinburgh, the Lothians, Fife and the Borders is up 7.5% year-on-year.

Your ESPC solicitor estate agent can advise you on average selling prices and how much homes are selling for the areas you’re interested in. You can also read our monthly House Price Reports to get a rough idea of average property selling prices, selling times and average percentage achieved over Home Report valuation.

How has the Coronavirus pandemic affected mortgage deposits?

A key thing to be aware of if you’re buying your first house or flat right now is that the pandemic has changed the policies of many UK lenders, particularly when it comes to mortgage deposits. Before the pandemic 5% deposit mortgages were commonplace, but for much of 2020 lenders required at least a 15% deposit.

However, more lenders are now offering 10% deposit mortgages and the 95% mortgage guarantee scheme means there should be more 5% deposit mortgages available as well.

How has COVID-19 changed Land and Buildings Transaction Tax?

In order to encourage property market activity following the lockdown restrictions, in July the Scottish Government temporarily raised the zero-tax threshold for Land and Building Transaction Tax (LBTT) to £250,000.

However, on 1st April 2021 the zero-tax threshold reverted to £145,000. Although if you’re a first time buyer, you benefit from relief up to £175,000.

Has Coronavirus affected house viewings?

You might be wondering how house or flat viewings work in the current situation. Viewing a property now is different to before COVID-19.

The Scottish Government has advised that buyers should view properties virtually initially and only progress to a physical viewing if necessary and they have a keen interest in buying.

You should therefore view the property virtually first if possible – if there are no virtual viewings available for the property you’re interested in, you should make use of the description, photographs and Home Report to decide if you would like to view it in person. Many properties on ESPC have virtual viewings available – search all properties for sale.

Open viewings are not currently permitted, so you must book an appointment with the selling agent. They can advise you on the process of viewing a property in the current circumstances.

While it’s common for first time buyers to take family members or friends to viewings to get their advice, in the current circumstances it is advised that as few people as possible from the same household attend a viewing. It may be worth sharing any virtual viewings, photos and property information with family members and friends to get their thoughts.

Has Coronavirus changed the process of moving to a new house?

When you’ve bought your first home, the day you collect the keys and move in is hugely exciting. The COVID-19 pandemic has changed some aspects of the removals process, which you should be aware of in the run up to moving day.

This includes ensuring that you practise social distancing and adhere to the necessary social distancing and hygiene measures if you require the help of a removals firm. Find out more about the current advice on the removals process.

First-time buyer advice on Coronavirus and the impact on the property market

We’re aware that buying your first home can be an exciting, but also daunting experience particularly due to the changes and uncertainty caused by the COVID-19 pandemic. As the home of property, ESPC and our agents are here to guide you through the property buying process in the following ways:

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Your Comprehensive Guide to Buying Your First Home in Scotland

Our guide covers everything from finding a solicitor estate agent to securing a mortgage. Explore our resources hub, events, and expert advice for first-time buyers in Scotland.

Coronavirus COVID-19: Advice for property buyers and sellers in Scotland

We've provided some advice for property buyers, sellers, homeowners, landlords and tenants during the Coronavirus (COVID-19) outbreak in the UK.

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The initial consultation with an ESPC Mortgages adviser is free and without obligation. Thereafter, ESPC Mortgages charges for mortgage advice are usually £350 (£295 for first-time buyers). YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED AGAINST IT.

ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants Ltd which is authorised and regulated by the Financial Conduct Authority.