First Time Buyers At An All Time High
First-time home buyers, your time is now.
For the first time in 23 years, FTBs are making up the biggest part of the housing market. Overall, the number of first time buyers reached 372,000 in 2018, accounting for the majority of home purchases for the first time since 1995.
First time buyers now account for just over 50% of all house purchases with a mortgage, an increase from 38% a decade ago, the research shows.
What is the average deposit amount for FTBs?
The average deposit amount for FTBs right now is £33,252 - although this sum can vary wildly depending on where in the country you are based. In London, FTBs can expect to put down up to £110,000 (or more) while in Wales, the lowest average deposit one can expect in 2019 is around £16k.
Meanwhile average deposits in Scotland, Wales and the northern regions in England fell by between 2% and 9%, driven by a decrease in the average deposit as a percentage of the purchase price, combined with slower house price growth.
How old is the average FTB?
In 2018, the average age of a FTB was 31. That is two years older than a decade ago. In London, the average age is slightly older at 33.
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.
Where are FTBs buying their homes?
There has been a lot of commentary about buying a home in London recently, given the average price paid in London grew only by 1.4% and the deposit fell by 1.4% over the last 12 months. This is in contrast to the 50% growth in first time buyer prices in London in the five years to 2018, compared to growth of 36% nationally.
It could be an ideal time to score a great deal in the capital now, given the uncertain political climate and the impact that has had on the property market.
What types of properties are FTBs buying?
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. Read the full story here.
Useful resources for FTBs
- When Is The Right Time To Buy A Property In London?
- How To Save For A House Desposit
- What's The Difference Between Leasehold And Freehold?
- Why It's The Right Time For FTBs To Buy
- The most useful article ever written for FTBs (according to us!)
- Our Exclusive Service For First Time Buyers
Why are we the best solicitors for you?
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 email@example.com with your question.
Who are GWlegal? We’re a national firm with local values.
Buying A Home?Click here get a quote
Content correct at time of publication.