Most mortgages go to first-time buyers, Halifax research shows

Increase in first-time buyers in the UK

For the first time since 1995, first-time buyers make up just over 50% of home purchases bought with mortgages in the UK. This figure is up from just 37% in 2010.

The trend in the rise of first-time buyers continues as the number of first-time buyers has increased for the seventh consecutive year.

The average price paid for a first home has jumped by 39%, from £192,300 in 2008 to £372,000 in 2018.

Gulf in prices

UK first time buyers are putting down an average of £32,841. The report highlights the gulf in prices between regions. First-time buyers in London paying the highest deposits with an average of £110,656, whilst those in Wales paying just £16,449.

The London average deposit is significantly higher than other regions not only due to higher house prices, but the deposit is on average a higher percentage of the purchase price.

Consequently, the average deposit in London is almost enough to out right purchase an average first-time buyer home in Northern Ireland (£129,615) or the Norther East (£126,104).

London the least affordable

9 out of 10 of the top least affordable areas for first-time buyers are in London. Oxford being the only place outside of London making the list.

The top ten most affordable local authority districts (LADs) were found to all be in the North West and Scotland. Pendle, in the North West, had a house price to average earnings ratio of just 2.6.

Conversely, the least affordable LAD Brent, in London, had a ratio of 13.3.

We are here to help

We know the mortgage market can be confusing for first time buyers, but our team of expert mortgage brokers at Westexe Mortgages are here to help.

Get in touch with one of our experts today. We will ensure that you fully understand what to do, how to do it, and all of the costs involved.

For more information on buying a property for the first time, visit our dedicated First Time Buyers page.

Halifax produced the analysis using information from UK Finance, its own house price database, and Office for national Statistics (ONS) earnings figures.

Posted on March 12, 2019 by Neil Henry, in: Staff posts

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