First-Time Buyers Market Hits Record High For First Time In Over 12 Years
Despite Brexit, political uncertainty and Millennials supposedly spending too much dosh on avocado toast, it would appear that there are loads of young people buying properties right now.
According to recent figures, first-time buyers reached an estimated 353,436 in 2019. This is the highest level since 2007.
The Yorkshire Building Society statistics indicate that this is the fifth time in six years that the number of people buying their first home with a mortgage exceeded 300,000.
The data also revealed that almost twice as many first-buyers secured a mortgage in 2019 as at the start of the financial crisis in 2008 - when the figure was 191,040 - with those entering the property market now accounting for 51 per cent of all homes purchased with a mortgage in 2019. In dramatic contrast, in 2008, this share was just 38 per cent.
In total, FTBs represent over half of all homes bought with a mortgage.
Why are so many FTBs jumping on the property ladder right now?
· Faster growing salaries for millennials
· Strong competition driving mortgage rates to record-lows
· More mortgage lenders offering 95% loan-to-value mortgages, reducing the need for a large deposit
· The increasing popularity of home loans with terms of up to 40 years, meaning a lower monthly mortgage repayment
· Government schemes such as Stamp Duty relief, Help to Buy equity loans and Help to Buy ISAs
· Low house prices due to political uncertainty/Brexit in some areas
Where are FTBs buying?
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Content correct at time of publication.