There are several reports across the internet that state, first-time buyer numbers are on the rise and have been since 2007. In 12 years, since the banking crisis and the recession, mortgages have been harder to come by, and yet for twelve years the numbers have gone up. In August this year, over 35,000 mortgages were given to people who were buying their very first home, and this is the highest total in a month since August 2007.
The borrowing amount hit around 80% of the property value, with the average first-time buyer borrowing around £175,000. The lowest interest rates in a while have been attached to these mortgages and that has meant that the total household income spent on mortgages sat at 17.1% – a low, low amount!
Why Are First-Time House Purchases Rising?
In the past twelve years, there has been a huge influx of investment into schemes that are run by government agencies. These include Help to Buy and the schemes within stamp duty exemption and the Help to Buy ISA. Alongside these, the changes in taxes have been favorable for first time buyers trying to get onto the property ladder, with investment landlords increasing their portfolios.
Who Does This Affect?
The housing market needs first time buyers. People want to purchase a property, even if it’s only a slice of one at 5%. They want to get onto the property ladder as early as possible and when they purchase property at the bottom of the property ladder, the homeowners already on it can start to move up it again! So, not only is the first time buyer market good for those starting out, it’s excellent for landlords and other owners at the top of the ladder. There is, however, more than enough evidence to show that a lot of buyers purchasing a home for the first time are avoiding the 5% starter homes, and they’re skipping a few steps to buying a home further up the property ladder.
When first time buyers skip the flats on the market for their larger homes, it makes it harder for those looking to buy their second home. They also then may face competition when they go to buy their own second home, driving up the prices and making the rest of the property ladder a little more difficult to achieve.
Talk To Priestley’s
Established in 2010, Priestley’s was born to provide a service for the professional property sector and West Yorkshire student sector. We are perfectionists in what we do, and so if you are a first time buyer looking for a home in the market, we can help you. We aim to understand your needs – you come first, after all – so that we can offer you what you require the most. We are ideally placed in the heart of Leeds City Centre, so you know you’re getting a direct service. Give us a call today, let’s discuss your interest as a first time buyer.