The number of first-time buyers (FTBs) entering the property market is continuing to grow, and now for the largest proportion of homebuyers for the first time in 23 years.
Halifax has revealed the number of FTBs rose by two per cent over the last year, marking the seventh consecutive year of growth for FTB purchases in the UK.
Since 2008, the proportion of FTBs entering the market has risen by 92 per cent from 192,300 to 372,000.
Managing director for Halifax Russell Galley said: “Last year was the first year that first-time buyers accounted for the majority of the market since 1995, which shows that the factors reducing some of the associated costs – such as continued low mortgage rates and Stamp Duty – are supporting the increasing number of people taking their first step on the property ladder.”
Halifax’s First-Time Buyer Review showed FTBs now make up more than 50 per cent of house purchases with a mortgage, which is 12 per cent higher than in 2008 when it was just 38 per cent.
This is not due to houses being more affordable though as the average cost of FTB properties has increased from £153,030 to £212,473 over the last ten years. Deposits have also grown from £21,133 to £33,252 during this period.
With deposits having increased by 57 per cent since 2008, many FTBs have to save for several years before they can afford the downpayment, as well as budget for decorating or renovating expenses when they move into their new home.
It is important that homebuyers – whether they are FTBs, second-steppers or downsizers – leave enough cash available so they can make changes to their property in order for it to begin to feel like home, whether they paint the walls or fit new carpet to hardfloor trims in the rooms.