According to the latest research from Zoopla, two thirds of first time buyers across the UK are choosing to purchase three bedroom houses over one and two bedroom flats. In addition, a quarter of buyers in Northern Ireland are looking to buy a four bedroom home.
This latest research shows that first-time buyers are not compromising on the size of their property or the price tag that goes with it, demonstrating that they are taking a long term view of their first home. This could be because of the higher age bracket of those buying their first home and knowledge of the cost of upsizing, taking into account mortgage fees, estate agent fees and LBTT. In addition, buyers are finding that it’s more affordable when they opt for longer mortgage terms with the typical first time buyer taking out a 29 year mortgage term compared to a 25 year term ten years ago.
First time buyers are expected to be the largest purchasing group this year given that they accounted for 36 per cent of all sales last year.
Data from Zoopla shows that the gap between the average price paid between first time buyers and other buying groups has narrowed over the last twenty years. Last year, first time buyers were purchasing homes that were 8 to 12 per cent cheaper than the average, compared to 20 to 25 per cent before 2007.
The largest barriers to buying a home is meeting the affordability criteria and raising the deposit required, even though they are currently putting down 23 per cent of their home’s value compared to 9 per cent before the crisis.
Despite stringent affordability checks, according to the House Price Index figures from Zoopla (to the end of July), Glasgow is currently the most affordable place to buy property with average house prices at just 3.1 times the average wage.
Talk to us at The Mortgage Hub if you would like advice on the type of property you can afford to purchase.