First-Time Buyer Market Boom

Published: 17/09/2019

We’re always hearing about how hard it is for young buyers to jump on the housing ladder. Sure, saving for a deposit and purchasing the first home of your own is no easy feat.

Anyone who achieves that, at a young age, should be commended for their hard work and dedication. Buying a property under the age of 35 isn’t as impossible as many would lead us to believe, however. Recent figures support this. In fact, first-time buyers right across the country are currently leading a house-buying boom…

There has been a rise in lending for first-time buyers across all regions of the UK, the latest figures from UK Finance have shown. 

What do the figures reveal?

In Q2, there were 9,960 new first-time buyer mortgages completed in London, 1.9% higher than in Q2 2018.

First-time buyer figures have seen an annual rise of 6.3% in Wales, 4.1% in Northern Ireland, and 3.5% in Scotland - the highest number of first-time buyer completions since Q2 2017.

These figures show that despite the nation’s current political uncertainty, FTBs are still securing mortgages in order to realise their homeownership dreams

All in all, it’s good news for the housing market! 

Let’s now look at a few more fun FTB FAQs...

How old is the average first-time buyer?

There’s a common conception that FTBs are now much older than, for example, their parents beforehand.

This isn’t necessarily true.

According to a study by Nested, the average age of an FTB in the UK is 27, just as it has been, more or less, for generations. 

Other studies have suggested the average age of an FTB is in fact 31 or 33 in London.

Either way, it seems to be that late 20s and early 30s remain the most popular time to purchase a home for the first time.

Where are FTBs buying?

According to research from Post Office Money using ONS data, 56% of UK properties are affordable for first-time buyers looking to get on the ladder. This means that FTBs are purchasing property all across the country.

There are a number of ‘affordability hotspots’ where FTBs are more inclined to buy however, such as Blackpool. In Blackpool,  the average property price is £110,000, compared to the average FTB household income in the North West of £40,053, meaning 100 per cent of properties in the area are deemed affordable to new homeowners.

Other affordability hotspots include Lincoln and Hull, where 100% of properties are considered affordable to FTBs, as well as Wigan and Oldham near Manchester, where around 80-90% of properties are affordable.

Down South commuter hub Reading is also seeing a rise in affordable properties becoming available. 

London remains the least affordable place to buy a house, for buyers of all budgets and ages.

What types of properties are FTBs buying?

Terraced houses, closely followed by semi-detached properties have continued to be the first-time buyer’s home of choice over the past decade, making up 67% of mortgages for first homes in 2018.

However, other FTBs have been seeking more creative solutions to help them realise their property dreams, especially given up to 40% of young people currently claim that they cannot afford to buy even the cheapest property in their area (The Institute for Fiscal Studies research). 

Couple Aubrey Fry, 37, and wife Clare, 34, have lived in a 40ft shipping repurposed container for the past three years, for example. The Frys, based in Hay-on-Wye on a farm owned by Aubrey’s family, decided to get creative after growing frustrated with London property prices. In total, the pair paid £30,000 to turn the container into a temporary home. Saving money on rent, the move has enabled them to save money towards a proper home, which they expect to purchase soon. 

How can GWlegal help?

GWlegal are a property solicitors based in Liverpool, specialising in buying or selling, remortgage, declaration of trust, bridging and buy-to-let landlords.

We can help you with all your property-related law needs.

If you have a legal matter you wish to discuss don’t hesitate to get in touch. You can call us on 0345 373 3737 email us with your question.

Who are GWlegal? We’re a national firm with local values.

Need a fixed-fee Conveyancing quote?

Click here get a quote

Content correct at time of publication.

Show All Articles