The number of first-time buyers getting on the property ladder has hit a seven-year low, Halifax warns.
Analysis by the lender found the number of first-time buyers during the first half of the year has fallen by almost a third (29%) annually to 116,943.
This is the first time the number of new buyers has dropped since 2015.
It comes as research by Halifax found first-time buyers are paying more than two thirds more on average for a property than 10 years ago.
Research based on the lender’s mortgage approvals found the average property price for new buyers has risen by 69% to £241,025 over the past decade while the typical age has increased from 30 to 31.
In London, the average first-time buyer property has nearly doubled in price (up 98%) to £463,536, while the north east of England has seen the smallest increase with prices up 42% to £140,114 on average.
North Ayrshire in Scotland was dubbed the most affordable area where the average property is 3.2 times average local earnings.
Tom Martin, mortgages director at Halifax, said: “Whilst the number of first-time buyers suffered a sharp fall during lockdown, numbers are beginning to increase as we approach the autumn, with purchases that were paused beginning to move again, and buyers making the most of the Government’s Stamp Duty changes.
“With first-time buyers in London paying almost double what they were a decade ago, yet many regions in Scotland remaining affordable, the challenges facing first-time buyers are clearly significantly influenced by where in the UK they are house hunting.”
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Number of First Time Buyers
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Annual % change | FTBs as % of all House Purchases Loans | |
| 2009 H1 | 72,180 | -34% | 38% |
| 2010 H1 | 92,370 | 28% | 38% |
| 2011 H1 | 83,580 | -10% | 39% |
| 2012 H1 | 97,980 | 17% | 40% |
| 2013 H1 | 110,490 | 13% | 44% |
| 2014 H1 | 140,140 | 27% | 47% |
| 2015 H1 | 131,700 | -6% | 47% |
| 2016 H1 | 151,370 | 15% | 47% |
| 2017 H1 | 163,000 | 8% | 50% |
| 2018 H1 | 165,340 | 1% | 51% |
| 2019 H1 | 164,800 | 0% | 51% |
| 2020 H1 | 116,843 | -29% | 52% |
Comments (5)
….due to a drop in affordable mortgage products being offered by lenders – if first time buyers had a 20% deposit then they would have bought already. As Chandos has pointed out, a 90% LTV mortgage is a little hard to find right now!
Yes, nothing at all to do with buyer scarcity… and all to do with mortgage availability.
What this article completely seems to miss is that right now trying to find a LTV of 90% is like trying to find a needle in a haystack.
No one is offering affordable first-time buyer mortgages, and those that are offering it are either tying buyers into or very high interest rates that are simply not affordable, which is the reason for a drop in first-time buyers, not just the increase in house price.
As we have been doing all we can to help our customers view safely within Covid19 guidelines we have seen a 45 % increase in rudeness towards us.
“Demanding times which we don’t do, asking for extra viewing times then not showing up, even thou our Virtual Viewing was done for them”
“Refusing to provide IDs at offer stage and stating it’s a breach of there rights in Covid times”
It has been mostly from certain clients, which expect you to allow 5/10 family members to view a property with no PPE or only using a head scarf.
the Guide then was 1 person at a time, we not have increased to 2, we use PPE face covers Shoe covers as standard and hand sanitiser…
We have been left horrible reviews by one family men we because we refused them access when they didn’t have the PPE.
Even now they call to book in viewings and don’t show up.
This is a complete waste of our Acc viewers time,
It is Shocking how we are been treated by some customers and they look to get away with it, all we can do is add file notes and do our utmost to carry out our job with dignity and pride..
You’ve commented on the wrong post I think…..! :))