13 Jul

Surge in first-time buyers

Surge in first-time buyers

There has been a rise in the share of homes being purchased with a mortgage by first-time buyers.

Research from Halifax shows that first-time buyers now account for 47 per cent of all UK homes bought with a home loan - compared to 38 per cent in 2011.

In total, there was around 139,500 first-time buyers in the first half of 2015 - a seven per cent drop compared to the same period last year.

However, the number of first-time buyers continues to increase compares to those already home owners.

In many cases first-time buyers are having to save a higher deposit before stepping on to the property ladder, especially when buying in London. However, the recent changes in Stamp Duty has helped elevate some pressure.

During May, the average first-time deposit was £29,894 - six per cent higher than in 2014 and 82 per cent more than in 2007.

Average prices have also increased over the past 12 months by eight per cent from £165,829 to £178,370.

"There was a modest decline in the number of first time buyers in the first half of the year following the substantial increases recorded in 2013 and 2014. This fall has been in line with the general softening in market activity," explained Craig McKinlay, Halifax mortgages director.

He added: "However, there are now signs of a pick-up in mortgage activity as the economy continues to recover and mortgage interest rates remain at very low levels. These factors could boost the number of first time buyers during the second half of the year."ADNFCR-1222-ID-801794185-ADNFCR

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