A rise in first time buyers is giving one location a much needed boost
In Enfield’s shifting property landscape, there’s been a clean swing from a buy-to-let market dominated by investors to one increasingly shaped by first-time buyers.
This change, according to Jana Chetraru (pictured), broker and director at BTJ Mortgages, has been a gradual but significant shift since the UK’s 2016 stamp duty reform, which altered the economics of property investment and has encouraged a new demographic to step on to the property ladder.
“We see significant decrease in the buy-to-let property market, and it just means more properties available for the first-time buyers,” Chetraru explained. For BTJ Mortgages, this shift means a pivot to meet the demands of a different type of client, one that is looking not just to purchase property but to establish their home in an area that was previously more attractive to investors than to first-time buyers.
The roots of this transformation lie in policy. In 2016, the UK government introduced a stamp duty surcharge on second properties (which has since been further increased from the recent Budget), impacting buy-to-let investors who often purchased properties to rent out. This regulation was aimed at cooling down an overheated rental market, reducing competition for properties, and ultimately giving first-time buyers a better chance at homeownership.
“The government’s aim was to reduce landlords and investment properties,” added Chetraru. This approach has indeed worked as planned in Enfield, where fewer landlords in the market have translated into more choices for people buying a home for the first time.
With fewer buy-to-let investors competing for the same properties, the Enfield market has seen a more diverse set of buyers who are not just speculating but seeking long-term homeownership.
“It’s been a shift since 2016,” Chetraru said, noting how the decline in buy-to-let demand has changed the local property market. Investors, once drawn to Enfield for its high rental demand and proximity to London, now face diminishing returns on investment. This shift has left a larger portion of properties open to those who may not have been able to secure a home otherwise.
For BTJ Mortgages, the impact of this shift is especially clear in their client base. Increasingly, their transactions have been with first-time buyers who bring a different set of questions and priorities compared to the seasoned investor. Whereas buy-to-let clients might focus on rental yields, property maintenance costs, and projected long-term returns, first-time buyers are more focused on finding the right mortgage terms, understanding the ins and outs of buying property, and securing a place they can call home. This has shaped BTJ’s service model as they now dedicate more resources to financial education, ensuring first-time buyers understand every step of the process.
“We prioritise understanding each client's unique needs,” Chetraru emphasised, pointing out that first-time buyers often need additional guidance to feel confident in their decision-making.
This rise in first-time buyers also reflects a broader shift in how Enfield is perceived. Close enough to London to remain accessible, but far enough to provide a respite from the capital’s escalating property prices, Enfield has become an attractive choice for those seeking affordable homes within commuting distance. During the pandemic, many individuals moved away from city centres, embracing remote work and suburban life. Enfield’s market, though somewhat impacted, saw an influx of interest from these new buyers.
“During the pandemic, we were quite busy,” Chetraru noted, explaining that the shift to online meetings helped her team adapt quickly to meet the needs of clients looking to relocate.
Adapting to this wave of first-time buyers has meant more than just a shift in BTJ’s client base; it has required a shift in how they approach client interactions and education. With new buyers filling the market, BTJ focuses on guiding clients through a process that can seem daunting.
“We ensure the client’s specific financial goals are effectively addressed,” Chetraru explained.
