According to the latest research, the number of first time buyers has topped 400,000 for the first time in 19 years.
The research from Yorkshire Building Society shows that first time buyer transactions reached 408,379 last year. This is 35% higher than the number of first time buyers entering the property market in 2020. This represents half of all house purchases with a mortgage, compared to just 37% in 2007.
Comparing it to the last first time buyer peak, this was 19 years ago in 2002 when 531,000 bought their first home. After the financial crash in 2007, between 2008 and 2012, the numbers were around 200,000 each year with the lowest year on record – 2011 – showing just 188,000 people bought their first home.
The key to the rising figures is the availability of mortgages for those with a small deposit along with affordable rates. It is surprising to see these numbers given the uncertainty that has surrounded homeowners and potential buyers since the start of the pandemic.
However, the need for space to work from home, the stamp duty holiday giving the market a much needed boost, low unemployment rates, the introduction of the Mortgage Guarantee Scheme and low borrowing costs have all created the perfect conditions for those looking to get onto the ladder and driven demand. What’s more, during the lockdown people’s spending fell considerably, which meant that potential buyers could save up a larger deposit faster than anticipated and join the race for space.
At present, demand is still exceeding supply which is pushing up prices. However, market commentators believe that this will level off throughout 2022. Yorkshire Building Society believes that it is unlikely that first-time buyer numbers would continue at this level during 2022 and beyond.
Buying your very first property can be daunting prospect and it’s difficult to know where to start. At The Mortgage Hub, we are here to help and guide you through the entire process. We will provide tailored advice based on your current circumstances and future plans, ensuring that you are aware of all potential costs associated with buying and owning a property. We will then source the best mortgage deal to suit your budget, objectives, and repayment preferences.
Talk to our team today for more information on purchasing your first home – we would be delighted to help. Call today on 01698 200050.