There was a sharp rise in the number of first-time buyers entering the property 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. Halifax data also revealed that although the average price of a typical first home has grown by 21% 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 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 on-going 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,” he added.
For expert legal advice on buying or selling a property in Scotland, whether you are a first-time buyer or an existing home owner, then please contact me, Elizabeth Baker, on 0141 552 3422 or by email eb@mitchells-roberton.co.uk