FTB numbers at 23 year high

FTB numbers at 23 year high

The latest data and analysis from Halifax has revealed that, during 2018, the number of first-time buyers accounted for the majority of home purchases for the first time since 1995.

According to the figures, first-time buyer numbers reached 372,000 last year, rising a further 2% and continuing an upward trend over the last seven years.

Although growth in 2018 was at a slower rate than 2017 (7.6%) and 2016 (9%), first-time buyers overall have increased by 92% from an all-time low of 192,300 in 2008.

Halifax found that first-time buyers now account for just over 50% of all house purchases with a mortgage, an increase from 38% a decade ago. Halifax data revealed that the average price paid for a typical first home has gone up by 39%, from £153,030 in 2008, to £212,473 in 2018, and the average deposit has increased by 57% from £21,133 to £33,252 over the same period.

The average deposit put down by a first-time buyer was 14% of the purchase price in 2008 (£21,366), jumping dramatically to 20% in 2009 – the highest over the last decade. In 2018 the average deposit has come down to 15% of the purchase price, although the average property price has continued to increase. UK first-time buyers are putting down an average deposit of £32,841, with those in London stumping up an eye-watering £110,656, while those in Wales are paying the lowest average deposit of £16,449.

Terraced houses, closely followed by semi-detached properties have continued to be the first-time buyer’s home of choice over the past decade, making up two-thirds (67%) of mortgages for first homes in 2018.

The average age of a first-time buyer in 2018 has remained at 31 – two years older than a decade ago. In London it has grown from 31 to 33 since 2008 – the oldest in the UK. The biggest increase in age was in Northern Ireland, up by three years from 28 to 31.

Russell Galley, Managing Director, Halifax, said: “New buyers coming on to the ladder are vital for the overall wellbeing of the UK housing market, and the continued growth in first-time buyers shows healthy movement in this important area – despite a shortage of homes and the ongoing challenge of raising a deposit.

Last year was the first year that first-time buyers accounted for the majority of the market since 1995, which shows that the factors reducing some of the associated costs – such as continued low mortgage rates and Stamp Duty – are supporting the increasing number of people taking their first step on to the property ladder.”
Source property reporter