19 Jan

First-time buyers on the rise

First-time buyers on the rise

The past 12 months has seen a strong rise in the number of people stepping on to the property ladder.

According to the latest Halifax First Time Buyer Review, the number of first-time buyers reached 335,750 in 2016 - up by 7.3 per cent compared to the previous year.

However, first-time buyer numbers remain 17 per cent below the pre-crisis peak of 402,800 a decade ago.

In addition, the average price and deposit paid by first-time buyers has more than doubled over the past ten years from £15,168 in 2006 to £32,321 in 2016, an increase of 113 per cent.

Martin Ellis, Halifax housing economist, said: "First-time buyers play a crucial role in the housing market, and each transaction has an impact further up the chain, as well as helping to drive levels of house building.

"The number of buyers getting on the housing ladder exceeded 300,000 for the third year in succession, a welcome boost for current home owners, house builders and the Government. Continuing low mortgage rates, high levels of employment have supported the market and Government schemes such as Help to Buy have improved affordability, enabling more first time buyers to buy their own property," he added.

"However, across the regions there is a contrasting picture. In London, which has one of the youngest populations in the UK, the average house price for a typical first time buyer is now more than £400,000 with an average deposit of over £100,000, more than twice that in the South East, the next most expensive region."ADNFCR-1222-ID-801831172-ADNFCR

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