03/02/2025
House prices in the UK reached a record high at the end of last year. According to a report in the Guardian, the average house price hit £298,083 in November 2024, up almost £5,000 on the previous record set in October.
Before the increases in 2024, the record high had been set in June 2022, when the average house price in the UK stood at £293,507.
Rising property prices are making it increasingly difficult for people to buy a new home, with conditions particularly tough for first-time buyers looking to take their initial steps on the ladder.
First-time buyers also face an extra challenge from April 2025 when changes to stamp duty land tax come into force.
Currently, first-time buyers pay no stamp duty when buying a home worth £425,000. From 1 April 2025, this threshold will drop to £300,000, and a rate of 5% SDLT will apply to property purchases up to £500,000.
This means that first-time buyers will go from paying nothing in SDLT on a home worth £425,000 to paying £6,250 in stamp duty after 1 April 2025.
With such challenging market conditions, first-time buyers are increasingly considering alternative routes to access the property market.
One of the most popular options is to buy a property with a friend, with a report from Lloyds Bank from July 2024 finding that almost half (46%) of first-time buyers were considering a property purchase with a friend or a sibling.
However, buying a property jointly can come with additional pitfalls and it is important to do your homework before taking the plunge.
In this blog, our experienced Residential Conveyancing Solicitors give their top tips on what to consider when buying a property with a friend.
1. Establish your budget.
In England and Wales, up to four people can buy a property together, and each person is likely to have contrasting budgets and different levels of borrowing capacity.
Buying a property involves a considerable financial outlay and it is crucial to be upfront about your finances from the start. Be clear about what you can afford and establish your maximum purchase price based on what everyone is comfortable with.
Remember to factor in various ‘hidden costs’ that are often required when doing your sums, such as removal costs, solicitors’ fees and house insurance.
Read more tips for conveyancing here.
2. Consider different types of property.
New builds, flats, older houses, leasehold homes and freehold properties each have their own advantages and disadvantages and hold certain appeal for potential buyers.
Visit as many different sorts of properties as you can in your desired location to establish your likes and dislikes.
Changes to leasehold property ownership, expected to take effect in the first half of this year, are likely to make leasehold properties more appealing to first-time buyers and other home movers.
The Leasehold and Freehold Reform Act 2024 will introduce a series of reforms, including making buying or selling a leasehold property quicker and easier, extending access to redress schemes and reforming the lease extension process.
3. Instruct a solicitor.
A solicitor plays a key role in a property purchase, taking care of the necessary paperwork, overseeing the purchase and handling all the legalities of the transfer of title.
Instructing an experienced residential conveyancer from the outset of your transaction can save you time, money and stress.
At Russell & Russell, our experienced conveyancing solicitors based across the North West have extensive experience of handling joint property purchases and will help ensure your transaction runs smoothly.
If you are thinking of buying a house or flat with a friend or sibling, get in touch with us today. To speak to one of our solicitors, call us on 0800 103 2600 or make an online enquiry.
4. Decide on type of home ownership.
When you buy a property with another person, or several other people, you can choose to buy your home as either joint tenants or tenants in common.
These two different forms of home ownership have distinct features, and it is crucial to understand the differences before committing to the initial purchase.
Most people who buy a property with a friend choose to make the purchase as tenants in common.
Owning a property as tenants in common means:
- You can have up to four named legal owners.
- You each can own differing shares in the property.
- If one person wants to sell their share, they can do so freely and receive their respective share of the proceeds.
- Owners can each pass on their share of their property in the Will rather than it passing on automatically to the other owner.
Buying a property as tenants in common can be more complicated than making a purchase as joint tenants. It is usually advisable to reinforce arrangements by making a declaration of trust, a Will or a cohabitation agreement.
Your solicitor will be able to advise on what documents you might need to ensure you have the necessary legal protections in place.
Read more about property purchases made as joint tenants and as tenants in common in our previous blog by clicking here.
Conveyancing Solicitors Near Me
Buying and selling property requires the advice of a specialist.
If you are looking for a conveyancing solicitor to help you with a residential property transaction, our experienced conveyancing solicitors can help you.
We offer efficient, convenient and cost-effective conveyancing services to clients across Bolton, Atherton, Bury, Chester, Farnworth, Horwich, Middleton and across the North West.
We currently employ over 90 people in our Conveyancing team, including qualified solicitors, licensed conveyancers and chartered legal executives.
Russell & Russell is accredited under the Law Society Conveyancing Quality Scheme and our conveyancers benefit from Continuing Professional Development.
We provide both internal and external training to all our staff to ensure that they’re able to meet the needs of our clients and deliver a quality service.
For more information about our residential conveyancing services, click here.
To speak to one of our solicitors, call us on 0800 103 2600 or make an online enquiry.
Please note that this article is meant as general guidance and not intended as legal or professional advice. Updates to the law may have changed since this article was published.
Please note that this article is meant as general guidance and not intended as legal or professional advice. Updates to the law may have changed since this article was published.