Halifax bank have recently revealed that first-time buyers are now making up the majority of home purchases bought with a mortgage in the United Kingdom – a situation not mirrored since 1995.
Their research has discovered that Pendle (Lancashire) and Copeland (Cumbria) were the two most affordable areas – an average house price costing just 2.6 times local earnings on average, whilst Brent in North West London the least affordable – requiring over 13 times the local earnings.
Also of interest within their findings was that the average deposit required was just in excess of £32,000 for those looking to take their first steps on the property ladder. However, for first-time buyers looking for a property in London the average deposit required was over £110,000.
Based on figures from industry group UK Finance and the Office for National Statistics, the Halifax First-Time Buyer Review revealed that just over half of all mortgage sales in 2018 came from customers recognised as first-time buyers, recognising an increase in the demographic of 180,000 per annum in the last 10 years.
The research revealed that the average price of a first-time home had also risen by 39% from £153,030 (2008) to £212,473 (2018), with terraced houses being the property of choice for those buying their first home.
Remarkably, for first-time buyers in the North East the average price of a home was the equivalent to the cost of the deposit in the capital.
With competitive mortgage deals and government schemes such as Help to Buy boosting the market for first-time buyers, at One 77 we have seen continued growth in the number of first-time buyers despite reported shortages of properties and the challenges faced by first-time buyers when trying to raise a deposit.
Are you a first-time buyers looking to take your first steps on the property ladder? Find out how the likes of Help to Buy can help. Call one of our expert advisers on 01249 474952 or fill out the form below and we will be in contact.