The number of first-time buyers in the UK have reached a 12-year high in 2019, according to the Yorkshire Building Society.

First-time buyers reached an estimated 353,436 in 2019, marginally up from 353,130 in 2018.
Despite a lack of distinct growth in the last 12 months, the overall trend is that figures are gradually approaching pre-financial crisis, with the number of people buying their first home with a mortgage exceeding 300,000 in five of the last six years.

The data shows that almost twice as many first-buyers secured a mortgage in 2019 as at the start of the financial crisis in 2008 (191,040) with those entering the property market now accounting for more than half (51%) of all homes purchased (with a mortgage) this year. In 2008 this share was just 38%.

With an average price of £415,618 London is the most expensive region for first-time buyer homes, followed by the South East (£264,097). That said, they are the most popular regions for first-time buyers accounting for 12% and 20% of sales respectively – significantly higher than other areas. More so, first-time buyers make up 60% of all house purchases (with a mortgage) in London even though the average deposit put down is £131,000.

Yorkshire Building Society strategic economist Nitesh Patel said: “First-time buyer numbers may now be plateauing as property prices have grown at a faster rate than salaries over the past 12 years. This means larger deposits are needed to get on to the property ladder, leading to challenges and barriers to homeownership, which are most pronounced in London and the south-east.

“In recent years first-time buyers have been helped by strong competition driving mortgage rates down to near-record lows, making borrowing more accessible. More mortgage lenders offering 95% loan-to-value mortgages, which reduces the need for a higher deposit. Home loans with terms of up to 40 years are becoming increasingly popular as first-time buyers look to lower their monthly mortgage repayment.

“Also government schemes such as stamp duty relief, Help to Buy equity loans and Help to Buy ISAs will have made an impact. This combination of factors has made buying a home more accessible in recent years.

“This has seen the first-time buyer market bounce back from the financial crisis and perform better than other sectors, such as the home-moving and buy-to-let markets. However as these figures show the market may have now reached its peak and buying your first home still remains tough for many.”

Share Story: