There was a sharp rise in the number of first-time buyers entering the market in 2017, despite having to put down a deposit that is more than double what was required ten years ago.
The latest Halifax First-Time Buyer Review found that the number of first-time buyers rose by 6% in the last 12 months, continuing an upward trend of six years, while the average deposit has risen by 91%, from £17,740 in 2007 to £33,339 a decade later.
Halifax data also revealed that although the average price of a typical first home has grown by 21% (or £37,377) from £174,703 to £212,079, first-time buyer levels have almost returned to those last seen in 2007, when 359,900 took their first step on to the property ladder.
This is an increase of 87% compared to an all-time low of 192,300 in 2008 and is now just 11% below the most recent peak of 402,800 in 2006. First-time buyers now account for half of all house purchases with a mortgage, an increase from 36% a decade ago.
“A flow of new buyers into home ownership is vital for the overall wellbeing of the UK housing market,” commented Russell Galley, Managing Director, Halifax. “This ten-year high in the number of first-time buyers shows continued healthy movement in this key area despite a shortage of homes and the ongoing challenge of saving enough of a deposit.”
“Low mortgage rates, high levels of employment and Government schemes such as Help to Buy have helped first-time buyers become a much greater segment of the market, and the recent abolition of Stamp Duty on purchases of up to £300,000 is likely to continue stimulating this growth by reducing the upfront costs associated with taking the first step on to the property ladder,” he added.
For expert legal advice on buying or selling property in Scotland, whether you are a first-time buyer or an existing home owner, then contact our specialist property lawyers today.