Mortgage-funded first time buyers are now half the property market
2nd January 2019
Yorkshire Building Society also claims record numbers of first time buyers purchasing homes fuelled by cheap loans, 95% LTV, Help to Buy and Stamp Duty relief.
The number of first-time buyers purchasing homes with a mortgage now represents half of the property market, it has been claimed, the highest proportion recorded for 23 years.
Figures published this morning by Yorkshire Building Society also reveal that first-time buyer activity funded by home loans is at is highest level since 2006.
The lender says 367,038 first-time buyers entered the market during 2018 compared to 362,800 the year before.
Yorkshire Building Society says the mortgage-funded first time buyer sector is now more important than the home moving and buy-to-let ones, fuelled by an increasing number of 95% LTV mortgages, competition between lenders, the Stamp Duty relief introduced in November 2017 and the ongoing Help to Buy scheme.
The lender’s analysis of official UK Finance figures plus its own internal data also suggest that the number of first-time buyer mortgages approved annually has doubled over the past ten years.
“Buying your first home remains tough for many but it’s encouraging to see first-time buyer levels at a 12-year high and climbing,” says Yorkshire Building Society’s Strategic Economist Nitesh Patel.
“Property prices have grown at a faster rate than wages over the past decade, which has created difficulties for first-time buyers.
“Various factors have helped to alleviate this challenging environment, although the market is still pretty tough for those wanting to become homeowners.
“Getting on to the housing ladder is still not an easy step for many young people, as demonstrated by the increasing numbers who have received help from the bank of mum and dad.”