Falling house prices, stamp duty cut and lenders offering record- low mortgage rates is creating a growing first-time buyers market.
Despite common believe that first-time buyers are being priced out of the property market in London, a number of estate agents have found that there remains a growing demand to supply houses and other property types to first-time buyers.
“First-time buyers are having to dig deeper than ever to get onto the property ladder. With the average price now over £200,000 and deposits at £33,000, it’s not surprising that the average age of a first-time buyer has crept up to 31,” said Russell Galley, Halifax managing director.
“The number of first-time buyers continues to grow and is nearly back to the peak seen of 2006. Government measures, such as Help to Buy, and record-low mortgage rates continue to make buying more financially attractive than renting, with savings of £900 a year.”
Although first-time buyers have to pay ever-increasing deposits when it comes to purchasing their first-time properties, the number of first-time buyers has continued to defy property market predictions and has grown at its fastest rate in over a decade.
First-time buyers have to put down record deposits of around £33,000 on average, an increase of over 71% from £19,360 back in 2008. In spite of this, the number of first-time buyers has doubled since a record low of 72,000 in the first half of 2009. First-time Buyers to grow according to our latest forecast.
London’s first-time buyers have been priced out of zones 1 and 2 across the capital, however, this has seen an increase in properties purchased slightly further out.
New research from estate agents, Hamptons International show that there are a number of areas in the capital we’re the majority of properties were purchased by first-time buyers.
“The number of first-time buyers in the capital reached its highest level in three years, boosted by schemes such as Help to Buy. The recent extension of the scheme until 2023 will help even more people get a foot on the housing ladder in the years ahead,” explains Jackie Bennett, direct of Mortgages at UK Finance.
Smaller, affordable, modern properties are becoming increasingly attractive and desirable for first-time buyers across the capital.
First-time buyers are increasingly growing cautious about the type of property they want to buy for their first home. Smaller properties remain the most common type of properties sold across the capital.
Despite Brexit uncertainties, there remains a growing house market for first-time buyers, with the number of purchases by first-time buyers expected to increase by 12.1% for 2019.
By building the right property for this market, 2019 can be a very profitable year for you and your business.
Development finance has enabled inspiring and experienced property developers to get funds fast and simple. You can apply for development finance with us today.
If you’re interested in development finance for a property, give us a call on 01825 749721 and well answer any of your questions. You can contact us here and we’ll get back to you as soon as possible.