2016 saw more first time home buyers than at any time since 2007.
The number of first time buyers in 2016 rose to 335,750 – an increase of 7.3% from 2015. In 2007, the figure was 359,000.
The figures come from the Halifax, which attributed the rise to low interest rates, high employment levels and the impact of Government schemes such as Help To Buy.
However, first time buyer numbers are still 17% below the immediate pre-financial crisis peak of 402,800 in 2006.
Also on the rise was the number of first time buyers taking out a long mortgage, for 25 years or more. 60% chose this option, with 28% taking out a mortgage of 30 – 35 years (compared to only 36% and 11% respectively in 2006). So first time buyers in their 30s could still be paying off their mortgage well into their 60s or even 70s.
The Halifax reports that the average deposit paid by first time buyers was £32,000 – more than double what it was 10 years ago. In London, the average deposit figure reached a staggering £100,445.
As always, there are wide regional variations. Across the country the average cost of a first property was £205,170 (£402,692 in London). Northern Ireland was the least expensive region for first time buyers where the average property cost was £115, 269 – just £15,000 more than the deposit for a Londoner looking to buy their first home.
Remember, we’re always happy to talk through your conveyancing needs with you. It can seem daunting if you’re a first time buyer looking to get onto the property ladder, so we’ve created a quick guide to help you understand the process. And of course, we’re happy to answer any questions you have. Contact us on 0114 249 6926 or email firstname.lastname@example.org.