Most Mortgages Go To First Time Buyers Halifax Research Shows

Mon 25 Feb 2019



First-time buyers now make up the majority of home purchases bought with a mortgage in the UK, figures show.

The Halifax bank said the last time such a situation existed was 1995.

Its research found Pendle in Lancashire and Copeland in Cumbria were the most affordable areas, with homes costing 2.6 times local earnings on average.

An average deposit of £32,841 is required to get on the property ladder in the UK, but first-time buyers in London need to find £110,656.

The Halifax First-Time Buyer Review is based on figures from industry group UK Finance, as well as its own house price database and Office for National Statistics earnings figures.

Halifax said first-time owners in 2018 accounted for just over half of all sales with a mortgage.

There has been an overall increase in UK first-time buyers from 192,300 in 2008 to 372,000 in 2018, although in Scotland and Wales numbers have fallen, the research found.

According to Halifax, the average price of a typical first home has jumped by 39%, from £153,030 in 2008 to £212,473 in 2018.

It said terraced houses, followed by semi-detached properties, were the first-time buyer's home of choice over the past decade.

A first-time buyer would be close to being able to buy a home outright in the north east of England or Northern Ireland for the same money it would take to raise a deposit in the capital last year, where the average price paid by a first-time buyer was £426,857.

In north-east England, the average first-time buyer home was £126,104 while in Northern Ireland it was £129,615.

In Wales, a first-time buyer spent an average of £144,542 in 2018, and in Scotland, it was £141,671.

Russell Galley, managing director at the Halifax, said the continued growth in first-time buyers came despite a shortage of homes and the ongoing challenge of raising a deposit.

Jackie Bennett, director of mortgages at UK Finance, said competitive mortgage deals and government schemes such as Help to Buy have boosted the market for first-time buyers while new buy-to-let purchases were "dampened" by tax and regulatory changes.

East Ayrshire in Scotland was identified as the third most affordable area, with homes at three times local gross earnings.

Brent, in north-west London, was identified as the least affordable area, with first-time buyer property prices at 13.3 times local earnings, followed by two other areas in the capital - Hackney and Newham, in east London.

Oxford was the only place outside London among the top 10 least affordable areas for first-time buyers, where average prices were nearly 11 times local earning

Original article from BBC News

"We highly recommend future vendors using Maxwell Hodgson to sell their property. We found them extremely efficient, professional and they went beyond their call of duty to help us. Thank you to all the staff."
Mr Sullivan

News Archive

April 2019

March's market snapshot

March 2019

Inspiration For Spring

We Are Recruiting

February’s market snapshot

We know exactly where we want to live

February 2019

Most Mortgages Go To First Time Buyers Halifax Research Shows

January 2019

January Market Snapshot

December Market Snapshot

December 2018

The best performing primary schools in our area

November 2018

Best agent regional award winner 2018

Christmas Lights

Maxwell Hodgson Estate Agents Shortlisted For Best In Region Award

Sheepstakes

October 2018

October Market Snapshot

2018 All agents Award Winners

Furnish and Fettle Gift For Our Clients

September 2018

Maxwell Hodgson Are Wetherby's Number 1 Selling Agent

Market Snapshot September

August 2018

Why Use High Street agents?

Market snapshot August

July 2018

Why Use High Street agents?

12 Things Potential Buyers Don’t Want To See in Your Bathroom….

Market snapshot July

June 2018

Market Snapshot for June

We are recruiting

May 2018

Achieve the best price for your home

Market Snapshot For May

Easy Ways to Make (and Keep) Your Home Ready for Potential Buyers

April 2018

April’s Market snapshot

7 Things potential buyers don't want to see in your kitchen

Thinking Of Using An Online Agent? .....Read What Our Clients Say

March 2018

Regional Market Snapshots March

Speedy Fixes to Sell Your Home Faster

February 2018

Regional Market Snapshots February

Local relocation agent specialist in top 10% of estate agency network

January 2018

Regional Market Snapshots January

Top tips to ease the house buying process

December 2017

Winner of our Christmas Competition Announced

Christmas Decorating Trends From House Beautiful

November 2017

Good news for first time buyers

Christmas Competition

October 2017

Where Is The Happiest Place To Live

Planning your moving day

September 2017

10 Things You Should Do Now to Declutter Your Garden for Winter

We are part of an award-winning network

Don't Just Move, Relocate

August 2017

Our 10 Year Anniversary!

Proud Sponsors of Wetherby Rugby Club

July 2017

Latest Comment on The Property Market From Rightmove

April 2017

Number Of House Sales Agreed Reaches Ten Year High

March 2017

The Improvements That Add Value to Your Home