It has been revealed that the number of first-time buyers purchasing homes with a mortgage now accounts for half of the British property market. This has been claimed, is the highest measurement on record for 23 years.
Figures published by Yorkshire Building Society also reveal that first-time buyer activity funded by home loans is also at its highest level since 2006.
British lenders have seen an increase from 367,038 first-time buyers entering the market during 2018 compared to 362,800 the year before.
Yorkshire Building Society says the mortgage-funded first time buyer sector is now more important than the home moving and buy-to-let ones. Fuelled by an increasing number of 95% LTV mortgages and many other factors including: Competition between lenders; the Stamp Duty relief introduced in November 2017; and the ongoing Help to Buy scheme. All of which have had a major impact on first time buyers and the property market.
MORTGAGE APPLICATIONS DOUBLED
Yorkshire Building Society’s analysis of official UK Finance figures, in addition to its own internal data shows that over the past ten years the number of mortgages approved for first-time buyers annually has doubled. Which of course has had a significant influence on the increase in property market share for first-time buyers.
“Buying your first home remains tough for many but it’s encouraging to see first-time buyer levels at a 12-year high and climbing,” says Yorkshire Building Society’s Strategic Economist Nitesh Patel.
Nitesh Patel went on to say: “Property prices have grown at a faster rate than wages over the past decade, which has created difficulties for first-time buyers. “Various factors have helped to alleviate this challenging environment, although the market is still pretty tough for those wanting to become homeowners. “Getting on to the housing ladder is still not an easy step for many young people, as demonstrated by the increasing numbers who have received help from the bank of mum and dad.”
With the seemingly increasing capability for first-time buyers to obtain mortgages, it is very likely we will continue seeing increased activity in this sector of the property market in the coming months and years.