Despite the current economic uncertainty, the housing market has some positive news to report. The number of first time buyers entering the market has reached its highest point in over a decade.
Figures from UK Finance show that mortgage finance is being granted to a greater number of first time buyers than at any time since the financial crisis. Levels are currently at a 12-year high, topping 35,000 per month, which hasn’t happened since August 2007 when 35,070 mortgages completed. There was also a modest increase YOY.
The rest of the market is showing signs of a slow-down however, with a decrease of 5.5% from August last year. 35,380 completions took place for existing homeowners. People are remortgaging less too, down 2.3% at 18,100, and Buy-to-Let mortgages completed just 5,900, representing a drop of 3.3% on figures from the previous year.
The biggest barrier for many hoping to own their own home continues to be the size of deposit required. For many first timers, mortgages equate to 78% of the value of the home, leaving 22% to find, which on average is around £50,000 – a tough ask for many having to pay rent as well, though those looking to buy are finding ways to amass the deposit sum.
There are also several schemes in place including government plans to help first time buyers to make the first step to owning their own home. Schemes like “Help to Buy” and “Shared Ownership” options are designed specifically to support first time buyers. It is certainly worth doing some research to understand more about the options available and to understand if you qualify for any of them.
For some handy hints for first time buyers, see the advice from Zoopla.
Buyers looking to get on the property ladder in the Home Counties can get their homebuyers report Berkshire or nearby from industry experts like Sam Conveyancing https://www.samconveyancing.co.uk/Homebuyers-Survey/Home-Buyers-Survey-Berkshire.
So even with the uncertainty about what the future holds for the country, it seems that Brits are determined to secure their own future by getting a foot on the property ladder. This news has been welcomed by the industry. The government’s plans to build more homes to keep up with demand remains on track so those that want to own their own home have the chance.